Swatch Group (OTCMKTS:SWGAY – Get Free Report) and Krispy Kreme (NASDAQ:DNUT – Get Free Report) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.
Institutional & Insider Ownership
81.7% of Krispy Kreme shares are owned by institutional investors. 3.0% of Krispy Kreme shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Swatch Group has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Krispy Kreme has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Swatch Group | $7.65 billion | 2.73 | $219.23 million | N/A | N/A |
Krispy Kreme | $1.67 billion | 0.39 | $3.10 million | ($0.13) | -29.23 |
Swatch Group has higher revenue and earnings than Krispy Kreme.
Dividends
Swatch Group pays an annual dividend of $0.12 per share and has a dividend yield of 1.4%. Krispy Kreme pays an annual dividend of $0.14 per share and has a dividend yield of 3.7%. Krispy Kreme pays out -107.7% of its earnings in the form of a dividend.
Analyst Recommendations
This is a breakdown of current ratings for Swatch Group and Krispy Kreme, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Swatch Group | 4 | 0 | 0 | 0 | 1.00 |
Krispy Kreme | 0 | 6 | 3 | 0 | 2.33 |
Krispy Kreme has a consensus target price of $7.58, indicating a potential upside of 99.34%. Given Krispy Kreme’s stronger consensus rating and higher possible upside, analysts plainly believe Krispy Kreme is more favorable than Swatch Group.
Profitability
This table compares Swatch Group and Krispy Kreme’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Swatch Group | N/A | N/A | N/A |
Krispy Kreme | -1.36% | -2.13% | -0.81% |
Summary
Krispy Kreme beats Swatch Group on 8 of the 14 factors compared between the two stocks.
About Swatch Group
The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials, watch hands, bracelets, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.
About Krispy Kreme
Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.
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