Sony (NYSE:SNE) and Provision (OTCMKTS:PVHO) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Risk and Volatility

Sony has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Provision has a beta of -2.74, suggesting that its share price is 374% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sony and Provision, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sony 0 2 3 0 2.60
Provision 0 0 0 0 N/A

Sony currently has a consensus price target of $85.29, suggesting a potential upside of 57.74%. Given Sony’s higher possible upside, research analysts plainly believe Sony is more favorable than Provision.

Dividends

Sony pays an annual dividend of $0.19 per share and has a dividend yield of 0.4%. Provision does not pay a dividend. Sony pays out 5.8% of its earnings in the form of a dividend. Sony has increased its dividend for 2 consecutive years.

Earnings and Valuation

This table compares Sony and Provision’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sony $77.15 billion 0.89 $4.42 billion $3.29 16.43
Provision $1.70 million 0.65 -$7.32 million N/A N/A

Sony has higher revenue and earnings than Provision.

Insider and Institutional Ownership

7.7% of Sony shares are owned by institutional investors. 7.0% of Sony shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Sony and Provision’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sony 7.70% 17.19% 3.34%
Provision N/A N/A -89.48%

Summary

Sony beats Provision on 13 of the 14 factors compared between the two stocks.

About Sony

Sony Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets worldwide. The company offers network services related to games, videos, and music contents; and home and portable game consoles, packaged software, and peripheral devices, as well as broadcast/professional, integrated circuit card technology, and medical and imaging device solutions. It also develops, produces, markets, and distributes recorded music; publishes music; and produces and distributes animation titles, game applications based on animation titles, and various services for music and visual products. In addition, the company offers live-action and animated motion pictures, as well as scripted and unscripted series, daytime serials, game shows, animated series, television movies, and miniseries and other television programs; operates a visual effects and animation unit; manages a studio facility; and operates television and digital networks. Further, it researches, develops, designs, produces, markets, distributes, sells, and services video and sound products; interchangeable lens, compact digital, and consumer and professional video cameras; display products, such as projectors and medical equipment; mobile phones, tablets, accessories, and applications; metal oxide semiconductor image sensors, charge-coupled devices, large-scale integration systems, and other semiconductors. Additionally, the company offers Internet broadband network services; creates and distributes content for various electronics product platforms, such as PCs and mobile phones; and provides life and non-life insurance, banking, and other services, as well as batteries, recording media, and storage media products. The company was formerly known as Tokyo Tsushin Kogyo Kabushiki Kaisha and changed its name to Sony Corporation in January 1958. Sony Corporation was founded in 1946 and is headquartered in Tokyo, Japan.

About Provision

Provision Holding, Inc. focuses on the development and distribution of three-dimensional (3D) holographic interactive video displays primarily for advertising and product merchandising markets. The company's products include HoloVision displays and 3D Savings Center kiosks that offer advertisers and customers to reach captive audience in grocery stores, malls, convenience stores, gas stations, banks, and other retail locations. Its HoloVision displays are also used in education, medical, entertainment, and consumer applications. Provision Holding, Inc. has a strategic alliance agreement with Coinstar, LLC to develop and integrate HoloVision display systems into Coinstar's kiosks. The company is headquartered in Chatsworth, California.

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