Comparing H.I.S. (OTCMKTS:HISJF) & OneSpaWorld (NASDAQ:OSW)

H.I.S. (OTCMKTS:HISJF) and OneSpaWorld (NASDAQ:OSW) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Volatility & Risk

H.I.S. has a beta of -0.26, suggesting that its share price is 126% less volatile than the S&P 500. Comparatively, OneSpaWorld has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Institutional & Insider Ownership

96.0% of OneSpaWorld shares are owned by institutional investors. 3.9% of OneSpaWorld shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for H.I.S. and OneSpaWorld, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H.I.S.	0	0	0	0	0.00
OneSpaWorld	0	0	6	1	3.14

OneSpaWorld has a consensus price target of $24.20, indicating a potential upside of 20.22%. Given OneSpaWorld’s stronger consensus rating and higher possible upside, analysts plainly believe OneSpaWorld is more favorable than H.I.S..

Earnings and Valuation

This table compares H.I.S. and OneSpaWorld”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
H.I.S.	$2.50 billion	0.39	$31.62 million	$0.40	32.73
OneSpaWorld	$936.08 million	2.19	$72.86 million	$0.71	28.35

OneSpaWorld has lower revenue, but higher earnings than H.I.S.. OneSpaWorld is trading at a lower price-to-earnings ratio than H.I.S., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares H.I.S. and OneSpaWorld’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
H.I.S.	1.22%	13.69%	2.27%
OneSpaWorld	7.90%	16.38%	12.27%

Summary

OneSpaWorld beats H.I.S. on 13 of the 15 factors compared between the two stocks.

About H.I.S.

H.I.S. Co., Ltd. provides travel agency services worldwide. The company offers sports related tours, such as ski and diving tours; casual to luxury cruises; escort accompanied tours, honeymoons, and onboard weddings; and local tour services in Australia, Thailand, Bali Island, Guam, and South Korea. It also operates hotels and theme parks; an online platform for various travel services; and bus tours connecting Tokyo and the surrounding area to Kansai and Nagoya. In addition, the company offers advertising services; and domestic and overseas travel insurance products. Further, it operates Hapi-robo st, a robot; offers various types of construction works; provides hotel amenities, guest room facilities, and furniture and electronic appliances for offices and houses; sets and manages events; coordinates with Japan medical tourism; and offers direct sales support services. Additionally, the company provides a range of diploma and certificate programs in business, international trade, hospitality, information technology, and health care; and communication equipment and services. Furthermore, it operates Smrt English, an English learning platform; and GREEN OCEAN, a job placement agency that focus on agriculture and accommodation business. The company was formerly known as International Tours Co., Ltd. and changed its name to H.I.S. Co., Ltd. in 1990. H.I.S. Co., Ltd. was incorporated in 1980 and is headquartered in Tokyo, Japan.

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.