Financial Contrast: Nestle (OTCMKTS:NSRGY) vs. Warby Parker (NYSE:WRBY)

Warby Parker (NYSE:WRBY) and Nestle (OTCMKTS:NSRGY) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.

Volatility & Risk

Warby Parker has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500. Comparatively, Nestle has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Valuation & Earnings

This table compares Warby Parker and Nestle”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warby Parker	$771.32 million	3.87	-$20.39 million	$0.01	2,824.00
Nestle	$103.78 billion	2.33	$12.36 billion	N/A	N/A

Nestle has higher revenue and earnings than Warby Parker.

Profitability

This table compares Warby Parker and Nestle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warby Parker	0.08%	1.96%	1.01%
Nestle	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and price targets for Warby Parker and Nestle, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warby Parker	0	8	11	0	2.58
Nestle	1	3	1	0	2.00

Warby Parker presently has a consensus target price of $27.00, suggesting a potential downside of 4.39%. Nestle has a consensus target price of $91.00, suggesting a potential downside of 3.06%. Given Nestle’s higher probable upside, analysts plainly believe Nestle is more favorable than Warby Parker.

Insider and Institutional Ownership

93.2% of Warby Parker shares are held by institutional investors. Comparatively, 0.6% of Nestle shares are held by institutional investors. 18.2% of Warby Parker shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Warby Parker beats Nestle on 9 of the 12 factors compared between the two stocks.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.

About Nestle

Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone North America; Zone Europe; Zone Asia, Oceania, and Africa; Zone Latin America; Zone Greater China; Nespresso; and Nestlé Health Science segments. It offers baby foods under the Cerelac, Gerber, Nido, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, Vittel, Buxton, Erikli, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Smarties, Aero, Nestlé Les Recettes de l'Atelier, Milkybar, Baci Perugina, Quality Street, and Fitness brands. The company provides coffee products under the Nescafé, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, and Blue Bottle Coffee brands; culinary, chilled, and frozen foods under the Maggi, DiGiorno, Thomy, Garden Gourmet, Sweet Earth, Hot Pockets, Stouffer's, Buitoni, Lean, and Life Cuisine brands; dairy products under the Carnation, Nido, Bear, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, Nescafé, and Milo brands. In addition, it offers food service products under the Milo, Nescafé, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Minor's, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Garden of Life, Nature's Bounty, Persona, Vital Proteins, Solgar, Peptamen, Resource, Vitaflo, Impact, and Compleat brands; ice cream products under the Movenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland.