Analyzing ON (NYSE:ONON) & Amer Sports (NYSE:AS)

Amer Sports (NYSE:AS) and ON (NYSE:ONON) are both large-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Institutional and Insider Ownership

40.3% of Amer Sports shares are owned by institutional investors. Comparatively, 36.4% of ON shares are owned by institutional investors. 68.6% of ON shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Amer Sports has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500. Comparatively, ON has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500.

Earnings & Valuation

This table compares Amer Sports and ON”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amer Sports	$6.57 billion	2.38	$427.40 million	$0.95	29.72
ON	$3.64 billion	5.70	$245.87 million	$1.47	22.12

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

Profitability

This table compares Amer Sports and ON’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amer Sports	7.35%	11.18%	7.02%
ON	12.09%	22.92%	13.33%

Analyst Ratings

This is a summary of recent ratings and target prices for Amer Sports and ON, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amer Sports	0	3	12	1	2.88
ON	1	5	21	2	2.83

Amer Sports currently has a consensus target price of $44.59, indicating a potential upside of 57.91%. ON has a consensus target price of $43.48, indicating a potential upside of 33.72%. Given Amer Sports’ stronger consensus rating and higher possible upside, research analysts plainly believe Amer Sports is more favorable than ON.

Summary

ON beats Amer Sports on 9 of the 15 factors compared between the two stocks.

About Amer Sports

Amer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe, the Middle East, Africa, the Americas, China, and the Asia Pacific. It operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The Technical Apparel segment offers outdoor apparel, footwear, and accessories which includes climbing gear. The Outdoor Performance segment provides hiking and running footwear, functional apparel, skiing and snowboarding gear, and lifestyle footwear. The Ball & Racquet Sports segment offers sports equipment for tennis, baseball, american football, basketball, golf, and various other professional and recreational sports. This segment provides custom-fitting protective gear and apparel for baseball, softball, football, and lacrosse. It sells its products under the Arc'teryx, PeakPerformance, Salomon, Atomic, Armada, ENVE, Wilson, Louisville Slugger, DeMarini, EvoShield, and ATEC brands. The company distributes its products through retail stores, general sporting goods retailers, specialty stores, independently operated partner stores, and distributors, as well as its e-commerce websites, and retailer-owned and third-party e-commerce websites. The company was formerly known as Amer Sports Management Holding (Cayman) Limited and changed its name to Amer Sports, Inc. in August 2023. Amer Sports, Inc. was founded in 1950 and is based in Helsinki, Finland.

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.