Head to Head Review: Seven and I (OTCMKTS:SVNDY) and SEA (NYSE:SE)

Seven and I (OTCMKTS:SVNDY) and SEA (NYSE:SE) are both large-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Volatility and Risk

Seven and I has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, SEA has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Seven and I and SEA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seven and I	0	2	0	0	2.00
SEA	1	2	10	1	2.79

SEA has a consensus price target of $149.40, indicating a potential upside of 54.47%. Given SEA’s stronger consensus rating and higher possible upside, analysts plainly believe SEA is more favorable than Seven and I.

Dividends

Seven and I pays an annual dividend of $0.19 per share and has a dividend yield of 1.5%. SEA pays an annual dividend of $1.76 per share and has a dividend yield of 1.8%. Seven and I pays out 23.7% of its earnings in the form of a dividend. SEA pays out 68.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation & Earnings

This table compares Seven and I and SEA”s 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	$0.80	15.56
SEA	$27.72 billion	2.13	$1.58 billion	$2.59	37.34

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

Profitability

This table compares Seven and I and SEA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seven and I	2.89%	8.15%	3.21%
SEA	5.98%	13.54%	5.59%

Institutional and Insider Ownership

0.0% of Seven and I shares are owned by institutional investors. Comparatively, 59.5% of SEA shares are owned by institutional investors. 0.2% of SEA shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

SEA beats Seven and I on 14 of the 17 factors compared between 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 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.