Critical Contrast: Shoprite (OTCMKTS:SRGHY) versus Online Vacation Center (OTCMKTS:ONVC)

Online Vacation Center (OTCMKTS:ONVC) and Shoprite (OTCMKTS:SRGHY) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Profitability

This table compares Online Vacation Center and Shoprite’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Online Vacation Center	1.64%	N/A	N/A
Shoprite	N/A	N/A	N/A

Earnings and Valuation

This table compares Online Vacation Center and Shoprite”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Online Vacation Center	$19.46 million	0.60	$490,000.00	$0.05	33.75
Shoprite	N/A	N/A	N/A	$6.97	2.72

Online Vacation Center has higher revenue and earnings than Shoprite. Shoprite is trading at a lower price-to-earnings ratio than Online Vacation Center, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Online Vacation Center and Shoprite, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Online Vacation Center	0	0	0	0	0.00
Shoprite	0	0	1	0	3.00

Insider and Institutional Ownership

0.0% of Shoprite shares are held by institutional investors. 71.3% of Online Vacation Center shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Online Vacation Center pays an annual dividend of $0.08 per share and has a dividend yield of 4.7%. Shoprite pays an annual dividend of $4.22 per share and has a dividend yield of 22.2%. Online Vacation Center pays out 160.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Shoprite pays out 60.5% of its earnings in the form of a dividend. Shoprite is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Shoprite beats Online Vacation Center on 6 of the 10 factors compared between the two stocks.

About Online Vacation Center

Online Vacation Center Holdings Corp., through its subsidiaries, provides vacation travel and marketing services in the United States. The company offers vacation services for affluent retiree markets. It also involved in developing and selling river, ocean, and land vacation packages; publishes three travel newsletters under the Top Travel Deals, Spotlight, and TravelFlash brands; selling online of golf training aids; and operates a cruises franchise that focused on travel sales through mobile agents, as well as a website that connects travelers to purchase hotel, resort, and vacation packages. The company was founded in 1972 and is based in Fort Lauderdale, Florida.

About Shoprite

Shoprite Holdings Ltd, an investment holding company, primarily engages in the food retailing business in South Africa and internationally. The company operates through four segments: Supermarkets RSA, Supermarkets Non-RSA, Furniture, and Other Operating segments. It also offers clothing, general merchandise, cosmetics, and liquor products; furniture and home entertainment products; and electrical and household appliances. In addition, the company distributes various pharmaceutical products and surgical equipment to pharmacies, hospitals, clinics, dispensing doctors, and veterinary surgeons. It operates stores under the Shoprite, Checkers, Checkers Hyper, Usave, Checkers Foods, OK Furniture, OK Power Express, House & Home, Shoprite LiquorShop, OK, Checkers LiquorShop, MediRite, Sentra, Megasave, OK Liquor, UNIQ, Petshop Science, Checkers Outdoor, Transpharm, Checkers Little Me, K'nect, Computicket, and Checkers Sixty60 brands. The company also operates franchise stores. Further, the company provides ticketing, and car rental and accommodation services; stadium management, capacity management, travel management, and access control solutions; and credit financing, financial, and treasury management services. Additionally, it invests in properties; and sells products to franchisees under drop-shipment arrangements. Shoprite Holdings Ltd was incorporated in 1936 and is based in Brackenfell, South Africa.