OneSpaWorld (NASDAQ:OSW – Get Free Report) and Makita (OTCMKTS:MKTAY – Get Free Report) 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 dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.
Institutional & Insider Ownership
96.0% of OneSpaWorld shares are held by institutional investors. 3.6% of OneSpaWorld shares are held by company insiders. Comparatively, 1.0% of Makita shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares OneSpaWorld and Makita’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% |
| Makita | 10.40% | 8.23% | 6.98% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OneSpaWorld | $1.01 billion | 2.19 | $71.62 million | $0.79 | 27.63 |
| Makita | $5.17 billion | 1.77 | $524.13 million | $2.05 | 16.82 |
Makita has higher revenue and earnings than OneSpaWorld. Makita is trading at a lower price-to-earnings ratio than OneSpaWorld, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for OneSpaWorld and Makita, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OneSpaWorld | 0 | 1 | 5 | 1 | 3.00 |
| Makita | 1 | 0 | 0 | 0 | 1.00 |
OneSpaWorld presently has a consensus target price of $30.60, suggesting a potential upside of 40.17%. Given OneSpaWorld’s stronger consensus rating and higher probable upside, equities analysts plainly believe OneSpaWorld is more favorable than Makita.
Dividends
OneSpaWorld pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Makita pays an annual dividend of $1.18 per share and has a dividend yield of 3.4%. OneSpaWorld pays out 25.3% of its earnings in the form of a dividend. Makita pays out 57.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Risk and Volatility
OneSpaWorld has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Makita has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.
Summary
OneSpaWorld beats Makita on 12 of the 17 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 Makita
Makita Corporation engages in the manufacture and sale of electric power tools, pneumatic tools, and gardening and household equipment in Japan, Europe, North America, Asia, Australia, Brazil, and the United Arab Emirates. It offers cordless, drilling/fastening, impact drilling/demolition, grinding/sanding, sawing, planning/routering, pneumatic, outdoor power, and dust extraction/other equipment, as well as accessories; and cutting equipment for new materials, masonry, and metals. The company was formerly known as Makita Electric Works, Ltd. and changed its name to Makita Corporation in April 1991. Makita Corporation was founded in 1915 and is headquartered in Anjo, Japan.
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