ON (NYSE:ONON) vs. TOD’S (OTCMKTS:TODGF) Head to Head Review

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

Analyst Ratings

This is a summary of current ratings for ON and TOD’S, as provided by MarketBeat.com.

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

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

Earnings & Valuation

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

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

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.

Profitability

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

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

Institutional & Insider Ownership

33.1% of ON shares are owned by institutional investors. Comparatively, 16.1% of TOD’S shares are owned by institutional investors. 68.6% of ON shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

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

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.

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.