Sonder (NASDAQ:SOND – Get Free Report) and OneSpaWorld (NASDAQ:OSW – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.
Risk and Volatility
Sonder has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, OneSpaWorld has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.
Earnings & Valuation
This table compares Sonder and OneSpaWorld”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sonder | $621.27 million | 0.00 | -$224.09 million | ($22.08) | 0.00 |
| OneSpaWorld | $936.08 million | 2.20 | $72.86 million | $0.71 | 28.41 |
OneSpaWorld has higher revenue and earnings than Sonder. Sonder is trading at a lower price-to-earnings ratio than OneSpaWorld, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Sonder and OneSpaWorld’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sonder | -42.27% | N/A | -22.67% |
| OneSpaWorld | 7.90% | 16.38% | 12.27% |
Institutional & Insider Ownership
45.9% of Sonder shares are owned by institutional investors. Comparatively, 96.0% of OneSpaWorld shares are owned by institutional investors. 3.8% of Sonder shares are owned by insiders. Comparatively, 3.9% of OneSpaWorld shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations and price targets for Sonder and OneSpaWorld, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sonder | 1 | 0 | 0 | 0 | 1.00 |
| OneSpaWorld | 0 | 0 | 7 | 1 | 3.13 |
OneSpaWorld has a consensus target price of $24.60, suggesting a potential upside of 21.96%. Given OneSpaWorld’s stronger consensus rating and higher possible upside, analysts clearly believe OneSpaWorld is more favorable than Sonder.
Summary
OneSpaWorld beats Sonder on 14 of the 15 factors compared between the two stocks.
About Sonder
Sonder Holdings Inc. engages in the hospitality business. It operates and manages properties comprising 1-, 2-, and 3+ bedroom; and studio apartments, as well as 1-bedroom hotel rooms for leisure travelers and families, digital nomads, and business travelers in North America, Europe, and the Middle East. The company is headquartered in San Francisco, California.
About OneSpaWorld
OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.
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