ON (NYSE:ONON) vs. a.k.a. Brands (NYSE:AKA) Critical Survey

ON (NYSE:ONON) and a.k.a. Brands (NYSE:AKA) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.

Volatility and Risk

ON has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500. Comparatively, a.k.a. Brands has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.

Institutional & Insider Ownership

36.4% of ON shares are owned by institutional investors. Comparatively, 55.4% of a.k.a. Brands shares are owned by institutional investors. 18.2% of a.k.a. Brands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares ON and a.k.a. Brands”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ON	$3.64 billion	5.93	$245.87 million	$0.72	46.98
a.k.a. Brands	$600.21 million	0.21	-$31.43 million	($2.93)	-4.00

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for ON and a.k.a. Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ON	2	3	17	2	2.79
a.k.a. Brands	1	2	1	0	2.00

ON presently has a consensus target price of $57.55, suggesting a potential upside of 70.14%. a.k.a. Brands has a consensus target price of $19.00, suggesting a potential upside of 61.98%. Given ON’s stronger consensus rating and higher possible upside, equities research analysts plainly believe ON is more favorable than a.k.a. Brands.

Profitability

This table compares ON and a.k.a. Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ON	6.59%	13.25%	7.56%
a.k.a. Brands	-5.24%	-23.52%	-6.31%

Summary

ON beats a.k.a. Brands on 13 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 a.k.a. Brands

a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. The company offers streetwear apparel, dresses, tops, bottoms, shoes, headwear, and accessories through its online stores under the Princess Polly, Petal & Pup, Culture Kings, and mnml brands. It also operates physical stores under the Culture Kings brand. The company was founded in 2018 and is headquartered in San Francisco, California.