Summer Infant (NASDAQ: SUMR) and Gravity (NASDAQ:GRVY) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Earnings and Valuation
This table compares Summer Infant and Gravity’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Summer Infant||$194.33 million||0.12||-$4.32 million||($0.27)||-4.52|
Gravity has lower revenue, but higher earnings than Summer Infant. Summer Infant is trading at a lower price-to-earnings ratio than Gravity, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Summer Infant and Gravity, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Summer Infant presently has a consensus price target of $2.75, suggesting a potential upside of 125.41%. Given Summer Infant’s higher probable upside, research analysts plainly believe Summer Infant is more favorable than Gravity.
This table compares Summer Infant and Gravity’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Summer Infant has a beta of -0.35, meaning that its share price is 135% less volatile than the S&P 500. Comparatively, Gravity has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.
Insider & Institutional Ownership
49.7% of Summer Infant shares are held by institutional investors. Comparatively, 7.0% of Gravity shares are held by institutional investors. 3.3% of Summer Infant shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Gravity beats Summer Infant on 8 of the 13 factors compared between the two stocks.
About Summer Infant
Summer Infant, Inc. is an infant and juvenile products company. The Company is engaged in the juvenile industry, providing mothers and caregivers a range of products to care for babies and toddlers. As of December 31, 2016, it marketed over 1,100 products in several product categories, including monitoring, safety, nursery, baby gear and feeding products. It markets its products, under its Summer Infant, SwaddleMe and Born Free brand names. Its anchor products in its product categories include monitoring, such as wireless fidelity (Wi-Fi)/Internet, video, audio and prenatal; safety, including gates, bath, potties, boosters and positioners; nursery, such as swaddle, travel accessories, safe sleep, soothers and sleep aides; baby gear, including strollers, bassinets, high chairs and playards, and feeding products, such as bottles, drinking cups, bibs and placemats, electronics and pacifiers. It sells its products across the globe to national retailers, as well as independent retailers.
Gravity Co., Ltd. is a developer, distributor and publisher of online games in Japan and Taiwan. The Company’s segments include online games, mobile games and other. Its principal product includes Ragnarok Online, which is a multiplayer online role playing game. It categorizes products into over three categories, such as online games; mobile games and applications, and other games and game-related products and services, including character-based merchandise and animation. It offers over five online games, such as Ragnarok Online, Ragnarok Online II, Requiem, Dragonica (Dragon Saga) and R.O.S.E. Online, which are action adventure massively multiplayer online role-playing games (MMORPG). It develops mobile games, including Ragnarok Online-Uprising: Valkyrie, Ragnarok Online Mobile Story and Ragnarok Violet, and also publishes mobile games licensed from third parties. It provides games for game consoles and handheld game consoles, such as Nintendo DS, Xbox 360 and the PlayStation series.
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