Advantage Solutions (NASDAQ:ADV) vs. Samsonite Group (OTCMKTS:SMSEY) Critical Comparison

Samsonite Group (OTCMKTS:SMSEY) and Advantage Solutions (NASDAQ:ADV) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Insider & Institutional Ownership

49.8% of Advantage Solutions shares are owned by institutional investors. 7.9% of Advantage Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Samsonite Group and Advantage Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Samsonite Group	0	1	0	2	3.33
Advantage Solutions	1	1	1	0	2.00

Advantage Solutions has a consensus target price of $2.00, indicating a potential upside of 127.27%. Given Advantage Solutions’ higher probable upside, analysts plainly believe Advantage Solutions is more favorable than Samsonite Group.

Volatility and Risk

Samsonite Group has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Advantage Solutions has a beta of 2.19, indicating that its share price is 119% more volatile than the S&P 500.

Valuation and Earnings

This table compares Samsonite Group and Advantage Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Samsonite Group	$3.59 billion	0.98	$345.70 million	$1.08	11.79
Advantage Solutions	$3.57 billion	0.08	-$326.96 million	($0.75)	-1.17

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

Profitability

This table compares Samsonite Group and Advantage Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Samsonite Group	8.68%	19.92%	5.88%
Advantage Solutions	-6.97%	-34.40%	-8.04%

Summary

Samsonite Group beats Advantage Solutions on 10 of the 15 factors compared between the two stocks.

About Samsonite Group

Samsonite International S.A. engages in the design, manufacture, sourcing, and distribution of travel luggage bags in North America, Asia, Europe, and Latin America. The company offers luggage, business, computer, outdoor, casual, and women's bags; and travel accessories and slim protective cases for personal electronic devices primarily under the Samsonite, Tumi, American Tourister, Speck, High Sierra, Gregory, Lipault, Kamiliant, Hartmann, and eBags brands, as well as other owned and licensed brand names. It sells its products through various wholesale distribution channels, as well as through company operated retail stores and e-commerce. The company was founded in 1910 and is based in Luxembourg, Luxembourg.

About Advantage Solutions

Advantage Solutions Inc. provides business solutions to consumer goods manufacturers and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising and in-store media services. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; retailer-centric services, such as retail experiential and private label services; and digital marketing, and digital media and advertising services. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. The company was founded in 1987 and is headquartered in Irvine, California.