SEA (NYSE:SE – Get Free Report) and Fred’s (OTCMKTS:FREDQ – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.
Insider & Institutional Ownership
59.5% of SEA shares are held by institutional investors. 0.2% of SEA shares are held by insiders. Comparatively, 27.2% of Fred’s 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 ratings and target prices for SEA and Fred’s, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SEA | 1 | 3 | 8 | 1 | 2.69 |
| Fred’s | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares SEA and Fred’s’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SEA | 5.98% | 13.54% | 5.59% |
| Fred’s | N/A | N/A | N/A |
Valuation & Earnings
This table compares SEA and Fred’s”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SEA | $22.94 billion | 3.13 | $1.58 billion | $2.59 | 45.41 |
| Fred’s | N/A | N/A | N/A | N/A | N/A |
SEA has higher revenue and earnings than Fred’s.
Summary
SEA beats Fred’s on 9 of the 10 factors compared between the two stocks.
About SEA
Sea Ltd. is an internet and mobile platform company, which engages in the provision of online gaming services. It operates through the following segments: Digital Entertainment, E-Commerce, and Digital Financial Services. The Digital Entertainment segment offers and develops mobile and PC online games. The E-Commerce segment manages a third-party marketplace through the Shopee mobile app and websites that connect buyers and sellers. The Digital Financial Services segment includes a variety of payment services and loans to individuals and businesses through SeaMoney. Sea was founded by Xiao Dong Li, Gang Ye, and Jing Ye Chen on May 8, 2009 and is headquartered in Singapore.
About Fred’s
Fred's, Inc., together with its subsidiaries, sells general merchandise through its retail discount stores and full service pharmacies. The company, through its stores, offers health, beauty, and personal care products; household cleaning supplies, disposable diapers, pet foods, and paper products; and various general merchandise, and food and beverage products to low, middle, and fixed income families located in small- to medium-sized towns. It also sells general merchandise to franchised Fred's stores. As of February 3, 2018, the company operated approximately 584 retail stores, 348 pharmacies, and 12 franchised stores located in 15 states primarily in the Southeastern United States. Fred's, Inc. was founded in 1947 and is headquartered in Memphis, Tennessee.
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