Reviewing Winmark (NASDAQ:WINA) and Seven and I (OTCMKTS:SVNDY)

Insider and Institutional Ownership

0.0% of Seven and I shares are owned by institutional investors. Comparatively, 73.3% of Winmark shares are owned by institutional investors. 10.1% of Winmark shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Seven and I pays an annual dividend of $0.19 per share and has a dividend yield of 1.2%. Winmark pays an annual dividend of $3.84 per share and has a dividend yield of 1.0%. Seven and I pays out 44.2% of its earnings in the form of a dividend. Winmark pays out 34.3% 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. Winmark has increased its dividend for 5 consecutive years.

Profitability

This table compares Seven and I and Winmark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seven and I	1.43%	6.89%	2.47%
Winmark	49.45%	-95.03%	102.38%

Risk and Volatility

Seven and I has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Winmark has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Valuation & Earnings

This table compares Seven and I and Winmark”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seven and I	$78.57 billion	0.53	$1.14 billion	$0.43	37.05
Winmark	$81.29 million	16.25	$39.95 million	$11.19	33.43

Seven and I has higher revenue and earnings than Winmark. Winmark is trading at a lower price-to-earnings ratio than Seven and I, indicating that it is currently the more affordable of the two stocks.

Summary

Winmark beats Seven and I on 9 of the 14 factors compared between the two stocks.

About Seven and I

Seven & i Holdings Co., Ltd. operates convenience stores, superstores, department stores, supermarkets, and specialty stores. It operates through six segments: Domestic Convenience Store operations, Overseas Convenience Store Operations, Superstore Operations, Department and Specialty Store Operations, Financial Services, and Others. The company engages in the operation of convenience stores comprising directly managed corporate stores and franchised stores; retail business that provides daily life necessities, such as food and other daily necessities and dollar merchandise and services; banking, leasing, and credit card business; and real estate business. Seven & i Holdings Co., Ltd. was incorporated in 2005 and is headquartered in Tokyo, Japan.

About Winmark

Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.