Samsonite Group (OTCMKTS:SMSEY) versus Advantage Solutions (NASDAQ:ADV) Critical Review

Advantage Solutions (NASDAQ:ADVGet Free Report) and Samsonite Group (OTCMKTS:SMSEYGet Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

49.8% of Advantage Solutions shares are owned by institutional investors. 7.9% of Advantage Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Advantage Solutions and Samsonite Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advantage Solutions 1 1 1 0 2.00
Samsonite Group 0 1 0 2 3.33

Advantage Solutions currently has a consensus target price of $2.00, indicating a potential upside of 124.87%. Given Advantage Solutions’ higher probable upside, equities research analysts clearly believe Advantage Solutions is more favorable than Samsonite Group.

Risk and Volatility

Advantage Solutions has a beta of 2.19, suggesting that its stock price is 119% more volatile than the S&P 500. Comparatively, Samsonite Group has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Profitability

This table compares Advantage Solutions and Samsonite Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Advantage Solutions -6.97% -34.40% -8.04%
Samsonite Group 8.68% 19.92% 5.88%

Valuation & Earnings

This table compares Advantage Solutions and Samsonite Group”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Advantage Solutions $3.57 billion 0.08 -$326.96 million ($0.75) -1.19
Samsonite Group $3.59 billion 0.97 $345.70 million $1.08 11.57

Samsonite Group has higher revenue and earnings than Advantage Solutions. Advantage Solutions is trading at a lower price-to-earnings ratio than Samsonite Group, indicating that it is currently the more affordable of the two stocks.

Summary

Samsonite Group beats Advantage Solutions on 10 of the 15 factors compared between the two stocks.

About Advantage Solutions

(Get Free Report)

Advantage Solutions Inc. provides business solutions to consumer goods manufacturers and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising and in-store media services. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; retailer-centric services, such as retail experiential and private label services; and digital marketing, and digital media and advertising services. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. The company was founded in 1987 and is headquartered in Irvine, California.

About Samsonite Group

(Get Free Report)

Samsonite International S.A. engages in the design, manufacture, sourcing, and distribution of travel luggage bags in North America, Asia, Europe, and Latin America. The company offers luggage, business, computer, outdoor, casual, and women's bags; and travel accessories and slim protective cases for personal electronic devices primarily under the Samsonite, Tumi, American Tourister, Speck, High Sierra, Gregory, Lipault, Kamiliant, Hartmann, and eBags brands, as well as other owned and licensed brand names. It sells its products through various wholesale distribution channels, as well as through company operated retail stores and e-commerce. The company was founded in 1910 and is based in Luxembourg, Luxembourg.

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