OneSpaWorld (NASDAQ:OSW) and H.I.S. (OTCMKTS:HISJF) Critical Contrast

H.I.S. (OTCMKTS:HISJF) and OneSpaWorld (NASDAQ:OSW) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Profitability

This table compares H.I.S. and OneSpaWorld’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
H.I.S.	1.22%	13.69%	2.27%
OneSpaWorld	7.90%	16.38%	12.27%

Analyst Ratings

This is a summary of recent recommendations for H.I.S. and OneSpaWorld, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H.I.S.	0	0	0	0	0.00
OneSpaWorld	0	0	6	1	3.14

OneSpaWorld has a consensus price target of $24.20, indicating a potential upside of 22.66%. Given OneSpaWorld’s stronger consensus rating and higher probable upside, analysts plainly believe OneSpaWorld is more favorable than H.I.S..

Volatility & Risk

H.I.S. has a beta of -0.26, suggesting that its stock price is 126% less volatile than the S&P 500. Comparatively, OneSpaWorld has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Earnings and Valuation

This table compares H.I.S. and OneSpaWorld”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
H.I.S.	$2.50 billion	0.39	$31.62 million	$0.40	32.73
OneSpaWorld	$895.02 million	2.25	$72.86 million	$0.71	27.79

OneSpaWorld has lower revenue, but higher earnings than H.I.S.. OneSpaWorld is trading at a lower price-to-earnings ratio than H.I.S., indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

96.0% of OneSpaWorld shares are held by institutional investors. 3.9% of OneSpaWorld shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

OneSpaWorld beats H.I.S. on 13 of the 15 factors compared between the two stocks.

About H.I.S.

H.I.S. Co., Ltd. provides travel agency services worldwide. The company offers sports related tours, such as ski and diving tours; casual to luxury cruises; escort accompanied tours, honeymoons, and onboard weddings; and local tour services in Australia, Thailand, Bali Island, Guam, and South Korea. It also operates hotels and theme parks; an online platform for various travel services; and bus tours connecting Tokyo and the surrounding area to Kansai and Nagoya. In addition, the company offers advertising services; and domestic and overseas travel insurance products. Further, it operates Hapi-robo st, a robot; offers various types of construction works; provides hotel amenities, guest room facilities, and furniture and electronic appliances for offices and houses; sets and manages events; coordinates with Japan medical tourism; and offers direct sales support services. Additionally, the company provides a range of diploma and certificate programs in business, international trade, hospitality, information technology, and health care; and communication equipment and services. Furthermore, it operates Smrt English, an English learning platform; and GREEN OCEAN, a job placement agency that focus on agriculture and accommodation business. The company was formerly known as International Tours Co., Ltd. and changed its name to H.I.S. Co., Ltd. in 1990. H.I.S. Co., Ltd. was incorporated in 1980 and is headquartered in Tokyo, Japan.

About OneSpaWorld

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.