Critical Comparison: Krispy Kreme (NASDAQ:DNUT) vs. Swatch Group (OTCMKTS:SWGAY)

Krispy Kreme (NASDAQ:DNUT) and Swatch Group (OTCMKTS:SWGAY) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Krispy Kreme and Swatch Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Krispy Kreme	0	6	3	0	2.33
Swatch Group	4	0	0	0	1.00

Krispy Kreme currently has a consensus target price of $7.58, indicating a potential upside of 120.20%. Given Krispy Kreme’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Krispy Kreme is more favorable than Swatch Group.

Dividends

Krispy Kreme pays an annual dividend of $0.14 per share and has a dividend yield of 4.1%. Swatch Group pays an annual dividend of $0.12 per share and has a dividend yield of 1.4%. Krispy Kreme pays out -107.7% of its earnings in the form of a dividend.

Profitability

This table compares Krispy Kreme and Swatch Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Krispy Kreme	-1.36%	-2.13%	-0.81%
Swatch Group	N/A	N/A	N/A

Volatility & Risk

Krispy Kreme has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Swatch Group has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Institutional and Insider Ownership

81.7% of Krispy Kreme shares are held by institutional investors. 3.0% of Krispy Kreme shares are held by company 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.

Valuation & Earnings

This table compares Krispy Kreme and Swatch Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Krispy Kreme	$1.67 billion	0.35	$3.10 million	($0.13)	-26.46
Swatch Group	$7.65 billion	2.68	$219.23 million	N/A	N/A

Swatch Group has higher revenue and earnings than Krispy Kreme.

Summary

Krispy Kreme beats Swatch Group on 8 of the 14 factors compared between the two stocks.

About Krispy Kreme

Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.

About Swatch Group

The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials, watch hands, bracelets, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.