Seven and I (OTCMKTS:SVNDY – Get Free Report) and Coupang (NYSE:CPNG – Get Free Report) are both large-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.
Volatility and Risk
Seven and I has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Coupang has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.
Insider and Institutional Ownership
0.0% of Seven and I shares are held by institutional investors. Comparatively, 83.7% of Coupang shares are held by institutional investors. 12.8% of Coupang shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Seven and I | 2.89% | 8.15% | 3.21% |
| Coupang | -2.16% | -8.77% | -2.00% |
Analyst Recommendations
This is a summary of current ratings and target prices for Seven and I and Coupang, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Seven and I | 0 | 2 | 0 | 0 | 2.00 |
| Coupang | 2 | 4 | 5 | 0 | 2.27 |
Coupang has a consensus target price of $24.06, indicating a potential upside of 52.35%. Given Coupang’s stronger consensus rating and higher probable upside, analysts clearly believe Coupang is more favorable than Seven and I.
Valuation and Earnings
This table compares Seven and I and Coupang”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Seven and I | $69.63 billion | 0.41 | $1.96 billion | $0.83 | 14.94 |
| Coupang | $34.53 billion | 0.82 | $208.00 million | ($0.43) | -36.73 |
Seven and I has higher revenue and earnings than Coupang. Coupang is trading at a lower price-to-earnings ratio than Seven and I, indicating that it is currently the more affordable of the two stocks.
About Seven and I
Seven & i Holdings Co., Ltd. operates convenience stores, superstores, department stores, supermarkets, and specialty stores. It operates through six segments: Domestic Convenience Store operations, Overseas Convenience Store Operations, Superstore Operations, Department and Specialty Store Operations, Financial Services, and Others. The company engages in the operation of convenience stores comprising directly managed corporate stores and franchised stores; retail business that provides daily life necessities, such as food and other daily necessities and dollar merchandise and services; banking, leasing, and credit card business; and real estate business. Seven & i Holdings Co., Ltd. was incorporated in 2005 and is headquartered in Tokyo, Japan.
About Coupang
Coupang, Inc., together with its subsidiaries owns and operates retail business through its mobile applications and Internet websites primarily in South Korea. The company operates through Product Commerce and Developing Offerings segments. It sells various products and services in the categories of home goods and décor products, apparel, beauty products, fresh food and groceries, sporting goods, electronics, and everyday consumables, as well as travel, and restaurant order and delivery services. In addition, the company offers Rocket Fresh, which offers fresh groceries; Coupang Eats, a restaurant ordering and delivery services; and Coupang Play, an online content streaming services, as well as advertising products. It also performs operations and support services in the United States, South Korea, Taiwan, Singapore, China, Japan, and India. Coupang, Inc. was incorporated in 2010 and is headquartered in Seattle, Washington.
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