Levi Strauss & Co. (NYSE:LEVI) versus ON (NYSE:ONON) Head-To-Head Analysis

ON (NYSE:ONON) and Levi Strauss & Co. (NYSE:LEVI) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Insider & Institutional Ownership

36.4% of ON shares are owned by institutional investors. Comparatively, 69.1% of Levi Strauss & Co. shares are owned by institutional investors. 1.1% of Levi Strauss & Co. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares ON and Levi Strauss & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ON	12.09%	22.92%	13.33%
Levi Strauss & Co.	9.66%	25.79%	8.61%

Volatility & Risk

ON has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500. Comparatively, Levi Strauss & Co. has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Earnings and Valuation

This table compares ON and Levi Strauss & Co.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ON	$3.64 billion	4.92	$245.87 million	$1.47	19.08
Levi Strauss & Co.	$6.28 billion	1.29	$578.10 million	$1.62	12.99

Levi Strauss & Co. has higher revenue and earnings than ON. Levi Strauss & Co. is trading at a lower price-to-earnings ratio than ON, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for ON and Levi Strauss & Co., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ON	2	4	18	1	2.72
Levi Strauss & Co.	0	4	12	0	2.75

ON currently has a consensus target price of $48.57, suggesting a potential upside of 73.16%. Levi Strauss & Co. has a consensus target price of $27.43, suggesting a potential upside of 30.30%. Given ON’s higher probable upside, analysts clearly believe ON is more favorable than Levi Strauss & Co..

Summary

ON beats Levi Strauss & Co. on 8 of the 15 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 Levi Strauss & Co.

Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.