OneSpaWorld (NASDAQ:OSW – Get Free Report) and Nintendo (OTCMKTS:NTDOY – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.
Dividends
OneSpaWorld pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Nintendo pays an annual dividend of $0.32 per share and has a dividend yield of 2.6%. OneSpaWorld pays out 25.3% of its earnings in the form of a dividend. Nintendo pays out 48.5% 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.
Earnings & Valuation
This table compares OneSpaWorld and Nintendo”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OneSpaWorld | $961.00 million | 2.49 | $71.62 million | $0.79 | 29.90 |
| Nintendo | $15.37 billion | 4.17 | $2.80 billion | $0.66 | 18.85 |
Nintendo has higher revenue and earnings than OneSpaWorld. Nintendo is trading at a lower price-to-earnings ratio than OneSpaWorld, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares OneSpaWorld and Nintendo’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% |
| Nintendo | 21.00% | 16.31% | 12.59% |
Insider and Institutional Ownership
96.0% of OneSpaWorld shares are held by institutional investors. Comparatively, 0.0% of Nintendo shares are held by institutional investors. 3.6% of OneSpaWorld shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for OneSpaWorld and Nintendo, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OneSpaWorld | 0 | 1 | 5 | 1 | 3.00 |
| Nintendo | 2 | 3 | 3 | 1 | 2.33 |
OneSpaWorld currently has a consensus target price of $30.60, indicating a potential upside of 29.55%. Given OneSpaWorld’s stronger consensus rating and higher possible upside, equities analysts clearly believe OneSpaWorld is more favorable than Nintendo.
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, Nintendo has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.
Summary
OneSpaWorld beats Nintendo on 11 of the 16 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 Nintendo
Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally. It also offers video game platforms, playing cards, Karuta, and other products; and handheld and home console hardware systems and related software. The company was formerly known as Nintendo Playing Card Co., Ltd. and changed its name to Nintendo Co., Ltd. in 1963. Nintendo Co., Ltd. was founded in 1889 and is headquartered in Kyoto, Japan.
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