Critical Analysis: Sekisui House (OTCMKTS:SKHSY) vs. Koss (NASDAQ:KOSS)

Koss (NASDAQ:KOSS) and Sekisui House (OTCMKTS:SKHSY) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Insider & Institutional Ownership

6.2% of Koss shares are held by institutional investors. Comparatively, 0.0% of Sekisui House shares are held by institutional investors. 44.1% of Koss shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Koss and Sekisui House’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Koss	-3.00%	-1.29%	-1.06%
Sekisui House	6.15%	11.24%	4.84%

Analyst Recommendations

This is a breakdown of recent ratings for Koss and Sekisui House, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koss	1	0	0	0	1.00
Sekisui House	0	0	0	1	4.00

Volatility & Risk

Koss has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, Sekisui House has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Earnings and Valuation

This table compares Koss and Sekisui House”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koss	$13.02 million	2.49	-$390,000.00	($0.04)	-85.75
Sekisui House	$28.07 billion	0.51	$1.56 billion	$2.52	8.69

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

Summary

Sekisui House beats Koss on 9 of the 13 factors compared between the two stocks.

About Koss

Koss Corporation, together with its subsidiaries, engages in the design, manufacture, and sale of stereo headphones and related accessories in the United States, the Czech Republic, Sweden, Canada, Korea, Republic of Belgium, Malaysia, and internationally. It offers high-fidelity headphones, wireless bluetooth headphones, wireless bluetooth speakers, computer headsets, telecommunications headsets, and active noise canceling headphones. The company sells its products through distributors, international distributors, audio specialty stores, the internet, national retailers, grocery stores, electronics retailers, and prisons under the Koss name, as well as private label. It sells its products to distributors for resale to school systems, as well as directly to other manufacturers. The company markets through domestic retail outlets and numerous retailers. It exports its products. Koss Corporation was founded in 1953 and is headquartered in Milwaukee, Wisconsin.

About Sekisui House

Sekisui House, Ltd. designs, constructs, and contracts built-to-order detached houses in Japan and internationally. The company operates through Custom Detached Houses, Rental Housing, Architectural/Civil Engineering, Remodeling, Real Estate Management Fees, Houses For Sale, Condominiums, Urban Redevelopment, and Overseas segments. It also engages in contracting of design and construction of custom detached houses, rental housing, office building, commercial buildings, and other properties; construction of reinforced concrete rental housing and commercial buildings; contracting of design and construction of civil engineering works; remodeling and renovation of houses; subleasing, management, operation, and brokerage of real estate; sale of houses and residential land; and sales of condominiums. Sekisui House, Ltd. was incorporated in 1929 and is headquartered in Osaka, Japan.