Head-To-Head Review: SEA (NYSE:SE) versus Ryohin Keikaku (OTCMKTS:RYKKY)

Ryohin Keikaku (OTCMKTS:RYKKY) and SEA (NYSE:SE) are both large-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings for Ryohin Keikaku and SEA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ryohin Keikaku	0	1	0	0	2.00
SEA	1	3	8	1	2.69

SEA has a consensus target price of $151.90, suggesting a potential upside of 30.75%. Given SEA’s stronger consensus rating and higher possible upside, analysts plainly believe SEA is more favorable than Ryohin Keikaku.

Profitability

This table compares Ryohin Keikaku and SEA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ryohin Keikaku	N/A	N/A	N/A
SEA	5.98%	13.54%	5.59%

Valuation & Earnings

This table compares Ryohin Keikaku and SEA”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ryohin Keikaku	$5.28 billion	3.20	$340.67 million	$0.37	40.65
SEA	$22.94 billion	3.09	$1.58 billion	$2.59	44.85

SEA has higher revenue and earnings than Ryohin Keikaku. Ryohin Keikaku is trading at a lower price-to-earnings ratio than SEA, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

59.5% of SEA shares are owned by institutional investors. 0.2% of SEA shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

SEA beats Ryohin Keikaku on 13 of the 14 factors compared between the two stocks.

About Ryohin Keikaku

Ryohin Keikaku Co., Ltd. develops, manufactures, distributes, and sells apparel, household goods, and food items in Japan and internationally. It offers apparel products, comprising shirts, denim jeans, socks, sneakers, innerwear, sweaters, camisoles, cardigans, windbreakers, duffle coats, skirts, trousers, pajamas for adults and kids, maternity stoles, backpacks, handbags, case trolleys, hats, mufflers, gloves, stockings, umbrellas, slippers, sandals, and Japanese working clothes; household goods products, including towels, mattresses, toning water, skin care products, make-up tools, fragrance oils, aroma diffusers, air purifiers, stationary, storage boxes and cases, kitchenware, cutleries, refrigerators, toasters, kettles, juicers, mixers, coffee makers, rice cookers, cabinets, shelves, chairs, benches, sofas, beds, duvets, blankets, refillable bottles, baskets, buckets, cleaning tools, laundry supplies, emergency kits, reusable masks, clocks, flashlights, radios, speakers, extension cords, travel adapters, toys, and bicycles and tricycles; and food products, including retort pouch foods, baumkuchen banana, frying-pan-ready meal kits, butter chicken curry, cookies, crackers, canned foods, potato chips, seasonings, jams, soups, frozen foods, doughnuts, ice cream, coffee beans, sake, sparkling water, and apple juice, as well as houses. The company designs, manufactures, and sells home furnishings, such as furniture, accessories, antiques, curtains, and rugs; engages in the production, consulting, and design of residential and commercial spaces; and develops and manages green/environmental businesses. In addition, it operates MUJI to GO shops that offer travel, commuting, business, study, and play products; Found MUJI; MUJI 500; Café&Meal; IDÉE stores; MUJI Campsite, which operates campgrounds; MUJI HOUSE; and muji.com, an online store. Ryohin Keikaku Co., Ltd. was incorporated in 1979 and is based in Tokyo, Japan.

About SEA

Sea Ltd. is an internet and mobile platform company, which engages in the provision of online gaming services. It operates through the following segments: Digital Entertainment, E-Commerce, and Digital Financial Services. The Digital Entertainment segment offers and develops mobile and PC online games. The E-Commerce segment manages a third-party marketplace through the Shopee mobile app and websites that connect buyers and sellers. The Digital Financial Services segment includes a variety of payment services and loans to individuals and businesses through SeaMoney. Sea was founded by Xiao Dong Li, Gang Ye, and Jing Ye Chen on May 8, 2009 and is headquartered in Singapore.