Financial Review: ON (NYSE:ONON) and Capri (NYSE:CPRI)

Capri (NYSE:CPRI) and ON (NYSE:ONON) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Volatility & Risk

Capri has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, ON has a beta of 2.35, meaning that its stock price is 135% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capri	$4.44 billion	0.45	-$1.18 billion	($9.96)	-1.69
ON	$2.63 billion	12.69	$275.23 million	$0.70	75.80

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capri	-26.61%	-39.55%	-7.27%
ON	7.81%	14.79%	8.83%

Analyst Ratings

This is a summary of current ratings and recommmendations for Capri and ON, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capri	0	8	4	0	2.33
ON	0	2	18	2	3.00

Capri presently has a consensus target price of $22.50, suggesting a potential upside of 33.93%. ON has a consensus target price of $63.85, suggesting a potential upside of 20.34%. Given Capri’s higher probable upside, equities analysts plainly believe Capri is more favorable than ON.

Institutional & Insider Ownership

84.3% of Capri shares are owned by institutional investors. Comparatively, 36.4% of ON shares are owned by institutional investors. 2.4% of Capri shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

ON beats Capri on 11 of the 15 factors compared between the two stocks.

About Capri

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also engages in licensing agreements to the manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.

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.