Contrasting ON (NYSE:ONON) & TOD’S (OTCMKTS:TODGF)

TOD’S (OTCMKTS:TODGF) and ON (NYSE:ONON) are both consumer cyclical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for TOD’S and ON, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOD’S	0	0	1	0	3.00
ON	0	4	13	0	2.76

ON has a consensus price target of $37.33, indicating a potential upside of 12.21%. Given ON’s higher possible upside, analysts plainly believe ON is more favorable than TOD’S.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TOD’S	N/A	N/A	N/A
ON	4.04%	6.85%	4.52%

Institutional & Insider Ownership

16.1% of TOD’S shares are owned by institutional investors. Comparatively, 33.1% of ON shares are owned by institutional investors. 68.6% of ON shares are owned 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.

Earnings and Valuation

This table compares TOD’S and ON’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOD’S	N/A	N/A	N/A	$2.91	12.92
ON	$2.00 billion	10.50	$88.67 million	$0.27	123.22

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

Summary

ON beats TOD’S on 9 of the 11 factors compared between the two stocks.

About TOD’S

TOD'S S.p.A., together with its subsidiaries, creates, produces, and distributes shoes, leather goods and accessories, and apparel in Italy, rest of Europe, the Americas, Greater China, and internationally. It distributes its products through directly operated single-brand stores (DOS), the e-commerce channels, franchised retail outlets, and a series of selected independent multi-brand stores under the TOD'S, HOGAN, FAY, and ROGER VIVIER brands. The company was founded in 1970 and is headquartered in Sant'Elpidio a Mare, Italy.

About ON

On Holding AG engages in the development and distribution of sports products worldwide. The company offers athletic footwear, apparel, and accessories for high-performance running, outdoor, training, all-day activities, and tennis. It offers its products through independent retailers and distributors, online, and stores. The company was founded in 2010 and is headquartered in Zurich, Switzerland.