ON (NYSE:ONON) versus Lakeland Industries (NASDAQ:LAKE) Financial Comparison

Lakeland Industries (NASDAQ:LAKE) and ON (NYSE:ONON) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

71.7% of Lakeland Industries shares are owned by institutional investors. Comparatively, 36.4% of ON shares are owned by institutional investors. 3.4% of Lakeland Industries shares are owned 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.

Risk and Volatility

Lakeland Industries has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, ON has a beta of 2.08, indicating that its share price is 108% more volatile than the S&P 500.

Earnings and Valuation

This table compares Lakeland Industries and ON”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lakeland Industries	$192.65 million	0.54	-$25.31 million	($2.71)	-3.83
ON	$3.22 billion	5.44	$245.87 million	$1.47	18.68

ON has higher revenue and earnings than Lakeland Industries. Lakeland Industries 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 recommendations for Lakeland Industries and ON, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lakeland Industries	1	1	3	0	2.40
ON	2	5	18	1	2.69

Lakeland Industries currently has a consensus price target of $15.00, suggesting a potential upside of 44.51%. ON has a consensus price target of $44.75, suggesting a potential upside of 62.94%. Given ON’s stronger consensus rating and higher probable upside, analysts plainly believe ON is more favorable than Lakeland Industries.

Profitability

This table compares Lakeland Industries and ON’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lakeland Industries	-13.99%	-11.35%	-6.94%
ON	12.09%	22.92%	13.33%

Summary

ON beats Lakeland Industries on 13 of the 15 factors compared between the two stocks.

About Lakeland Industries

Lakeland Industries, Inc. manufactures and sells industrial protective clothing and accessories for the industrial and public protective clothing market worldwide. It offers firefighting and heat protective apparel to protect against fire; high-end chemical protective suits to provide protection from highly concentrated, toxic and/or lethal chemicals, and biological toxins; and limited use/disposable protective clothing, such as coveralls, laboratory coats, shirts, pants, hoods, aprons, sleeves, arm guards, caps, and smocks. The company provides durable woven garments, including electrostatic dissipative apparel used in electronics clean rooms; flame resistant meta aramid, para aramid, and FR cotton coveralls/pants/jackets used in petrochemical, refining operations, and electrical utilities; FR fabrics; and cotton and polycotton coveralls, lab coats, pants, and shirts. In addition, it provides high visibility clothing comprising reflective apparel, including vests, T-shirts, sweatshirts, jackets, coats, raingear, jumpsuits, hats, and gloves; and gloves and sleeves that are used in the automotive, glass, and metal fabrication industries. The company sells its products to a network of safety and industrial supply distributors through in-house sales teams, customer service group, and independent sales representatives. It serves end users, such as integrated oil, chemical/petrochemical, automobile, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high technology electronics manufacturers, as well as scientific, medical laboratories, and the utilities industry; and federal, state, and local governmental agencies and departments. Lakeland Industries, Inc. was incorporated in 1982 and is headquartered in Huntsville, Alabama.

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.