Critical Review: OneSpaWorld (NASDAQ:OSW) versus Ceconomy (OTCMKTS:MTTRY)

OneSpaWorld (NASDAQ:OSW) and Ceconomy (OTCMKTS:MTTRY) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for OneSpaWorld and Ceconomy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneSpaWorld	0	1	5	1	3.00
Ceconomy	0	0	0	0	0.00

OneSpaWorld presently has a consensus target price of $30.60, indicating a potential upside of 16.08%. Given OneSpaWorld’s stronger consensus rating and higher possible upside, equities analysts clearly believe OneSpaWorld is more favorable than Ceconomy.

Valuation and Earnings

This table compares OneSpaWorld and Ceconomy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneSpaWorld	$961.00 million	2.78	$71.62 million	$0.79	33.37
Ceconomy	$25.51 billion	0.08	-$38.73 million	N/A	N/A

OneSpaWorld has higher earnings, but lower revenue than Ceconomy.

Insider & Institutional Ownership

96.0% of OneSpaWorld shares are held by institutional investors. 3.6% of OneSpaWorld shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares OneSpaWorld and Ceconomy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OneSpaWorld	8.02%	18.36%	14.28%
Ceconomy	-0.03%	12.47%	0.67%

Volatility and Risk

OneSpaWorld has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Ceconomy has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.

Summary

OneSpaWorld beats Ceconomy on 11 of the 14 factors compared between the two stocks.

About OneSpaWorld

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.

About Ceconomy

Ceconomy AG, together with its subsidiaries, engages in the consumer electronics retail business. It operates stores under the MediaMarkt and Saturn brands. The company offers professional assistance for the installation, connection, and troubleshooting of electronic devices at home under the Deutsche Technikberatung brand. It operates in Germany, Austria, Switzerland, and Hungary, as well as in Western, Southern, and Eastern Europe. Ceconomy AG is based in Düsseldorf, Germany.