Head to Head Analysis: QuantaSing Group (NASDAQ:QSG) and Latham Group (NASDAQ:SWIM)

Latham Group (NASDAQ:SWIM) and QuantaSing Group (NASDAQ:QSG) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Valuation & Earnings

This table compares Latham Group and QuantaSing Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Latham Group	$545.91 million	1.55	$11.12 million	$0.05	143.80
QuantaSing Group	$2.73 billion	0.03	$50.08 million	$0.90	2.00

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

Volatility & Risk

Latham Group has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, QuantaSing Group has a beta of -0.98, indicating that its stock price is 198% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Latham Group and QuantaSing Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Latham Group	3	2	2	0	1.86
QuantaSing Group	0	1	0	0	2.00

Latham Group currently has a consensus price target of $7.83, indicating a potential upside of 8.95%. Given Latham Group’s higher probable upside, analysts plainly believe Latham Group is more favorable than QuantaSing Group.

Insider and Institutional Ownership

84.0% of Latham Group shares are owned by institutional investors. 3.3% of Latham Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Latham Group and QuantaSing Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Latham Group	0.92%	1.31%	0.63%
QuantaSing Group	13.13%	47.31%	21.93%

About Latham Group

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.

About QuantaSing Group

QuantaSing Group Limited provides online learning services in the People's Republic of China. The company offers online courses, including financial literacy, short-video production, personal well-being, electronic keyboard, and meditation courses. It also offers marketing and enterprise talent management services to enterprise customers. In addition, the company provides online and literacy course to adult learners under various brands, including QiNiu, JiangZhen, and QianChi. QuantaSing Group Limited was founded in 2019 and is headquartered in Beijing, the People's Republic of China.