Comparing Woolworths (OTCMKTS:WLWHY) & ON (NYSE:ONON)

ON (NYSE:ONON) and Woolworths (OTCMKTS:WLWHY) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Profitability

This table compares ON and Woolworths’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ON	7.92%	15.72%	8.99%
Woolworths	N/A	N/A	N/A

Valuation and Earnings

This table compares ON and Woolworths”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ON	$3.64 billion	7.01	$245.87 million	$0.93	42.96
Woolworths	$4.42 billion	0.71	$134.61 million	N/A	N/A

ON has higher earnings, but lower revenue than Woolworths.

Institutional and Insider Ownership

36.4% of ON shares are held by institutional investors. 68.6% of ON shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for ON and Woolworths, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ON	1	4	15	2	2.82
Woolworths	0	1	0	1	3.00

ON presently has a consensus target price of $55.05, suggesting a potential upside of 37.80%. Given ON’s higher possible upside, equities research analysts clearly believe ON is more favorable than Woolworths.

Risk and Volatility

ON has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500. Comparatively, Woolworths has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Summary

ON beats Woolworths on 11 of the 13 factors compared between the two stocks.

About ON

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.

About Woolworths

Woolworths Holdings Limited, through its subsidiaries, operates a chain of retail stores in South Africa, Australia, and New Zealand. It operates through seven segments: Woolworths Fashion, Beauty and Home; Woolworths Food; Woolworths Financial Services; Woolworths Logistics; Country Road Group; and Treasury. The company provides food, clothing, homeware, beauty, and various lifestyle products. It offers financial products and services, such as store cards, credit cards, personal loans, and other financial products. The company is also involved in the cash and debt management activities. Woolworths Holdings Limited was incorporated in 1929 and is based in Cape Town, South Africa.