Financial Review: Online Vacation Center (OTCMKTS:ONVC) versus Shoprite (OTCMKTS:SRGHY)

Shoprite (OTCMKTS:SRGHY) and Online Vacation Center (OTCMKTS:ONVC) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Institutional and Insider Ownership

0.0% of Shoprite shares are held by institutional investors. 71.3% of Online Vacation Center 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.

Dividends

Shoprite pays an annual dividend of $4.22 per share and has a dividend yield of 22.8%. Online Vacation Center pays an annual dividend of $0.08 per share and has a dividend yield of 4.4%. Shoprite pays out 60.5% of its earnings in the form of a dividend. Online Vacation Center pays out 160.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Shoprite is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Shoprite and Online Vacation Center’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shoprite	N/A	N/A	N/A
Online Vacation Center	1.64%	N/A	N/A

Valuation & Earnings

This table compares Shoprite and Online Vacation Center”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shoprite	N/A	N/A	N/A	$6.97	2.66
Online Vacation Center	$19.46 million	0.64	$490,000.00	$0.05	36.00

Online Vacation Center has higher revenue and earnings than Shoprite. Shoprite is trading at a lower price-to-earnings ratio than Online Vacation Center, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Shoprite and Online Vacation Center, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoprite	0	0	1	0	3.00
Online Vacation Center	0	0	0	0	0.00

Summary

Shoprite beats Online Vacation Center on 6 of the 10 factors compared between the two stocks.

About Shoprite

Shoprite Holdings Ltd, an investment holding company, primarily engages in the food retailing business in South Africa and internationally. The company operates through four segments: Supermarkets RSA, Supermarkets Non-RSA, Furniture, and Other Operating segments. It also offers clothing, general merchandise, cosmetics, and liquor products; furniture and home entertainment products; and electrical and household appliances. In addition, the company distributes various pharmaceutical products and surgical equipment to pharmacies, hospitals, clinics, dispensing doctors, and veterinary surgeons. It operates stores under the Shoprite, Checkers, Checkers Hyper, Usave, Checkers Foods, OK Furniture, OK Power Express, House & Home, Shoprite LiquorShop, OK, Checkers LiquorShop, MediRite, Sentra, Megasave, OK Liquor, UNIQ, Petshop Science, Checkers Outdoor, Transpharm, Checkers Little Me, K'nect, Computicket, and Checkers Sixty60 brands. The company also operates franchise stores. Further, the company provides ticketing, and car rental and accommodation services; stadium management, capacity management, travel management, and access control solutions; and credit financing, financial, and treasury management services. Additionally, it invests in properties; and sells products to franchisees under drop-shipment arrangements. Shoprite Holdings Ltd was incorporated in 1936 and is based in Brackenfell, South Africa.

About Online Vacation Center

Online Vacation Center Holdings Corp., through its subsidiaries, provides vacation travel and marketing services in the United States. The company offers vacation services for affluent retiree markets. It also involved in developing and selling river, ocean, and land vacation packages; publishes three travel newsletters under the Top Travel Deals, Spotlight, and TravelFlash brands; selling online of golf training aids; and operates a cruises franchise that focused on travel sales through mobile agents, as well as a website that connects travelers to purchase hotel, resort, and vacation packages. The company was founded in 1972 and is based in Fort Lauderdale, Florida.