Critical Contrast: ON (NYSE:ONON) versus Stein Mart (OTCMKTS:SMRTQ)

Stein Mart (OTCMKTS:SMRTQ) and ON (NYSE:ONON) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Institutional & Insider Ownership

36.4% of ON shares are owned by institutional investors. 39.4% of Stein Mart shares are owned by company insiders. Comparatively, 68.6% of ON shares are owned by company 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.

Analyst Recommendations

This is a breakdown of recent recommendations for Stein Mart and ON, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stein Mart	0	0	0	0	0.00
ON	2	3	18	1	2.75

ON has a consensus price target of $59.24, suggesting a potential upside of 82.63%. Given ON’s stronger consensus rating and higher possible upside, analysts clearly believe ON is more favorable than Stein Mart.

Earnings and Valuation

This table compares Stein Mart and ON”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stein Mart	N/A	N/A	N/A	N/A	N/A
ON	$3.64 billion	5.69	$245.87 million	$0.72	45.05

ON has higher revenue and earnings than Stein Mart.

Profitability

This table compares Stein Mart and ON’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stein Mart	N/A	N/A	N/A
ON	6.59%	13.25%	7.56%

Summary

ON beats Stein Mart on 10 of the 10 factors compared between the two stocks.

About Stein Mart

Stein Mart, Inc., a specialty omnichannel off-price retailer, offers designer and name-brand fashion apparels, home décor merchandise, accessories, and shoes at everyday discount prices in the United States. The company's stores also provides endless aisle, a mobile technology to locate products; a SMart Rewards loyalty program; co-branded and private label credit card programs; and electronic gift cards. As of June 3, 2020, it operated 281 stores in 30 states. The company also sells its products through an online retail selling site. Stein Mart, Inc. was founded in 1908 and is headquartered in Jacksonville, Florida. On August 12, 2020, Stein Mart, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida.

About ON

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.