Critical Analysis: Stage Stores (OTCMKTS:SSINQ) and ON (NYSE:ONON)

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

Institutional and Insider Ownership

36.4% of ON shares are held by institutional investors. 11.6% of Stage Stores shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for ON and Stage Stores, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ON	1	3	15	3	2.91
Stage Stores	0	0	0	0	0.00

ON currently has a consensus target price of $53.79, suggesting a potential upside of 41.71%. Given ON’s stronger consensus rating and higher probable upside, equities analysts clearly believe ON is more favorable than Stage Stores.

Profitability

This table compares ON and Stage Stores’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ON	7.92%	15.72%	8.99%
Stage Stores	N/A	N/A	N/A

Valuation and Earnings

This table compares ON and Stage Stores”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ON	$3.64 billion	6.66	$245.87 million	$0.93	40.82
Stage Stores	N/A	N/A	N/A	N/A	N/A

ON has higher revenue and earnings than Stage Stores.

Summary

ON beats Stage Stores on 9 of the 10 factors compared between the two stocks.

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.

About Stage Stores

Stage Stores, Inc. operates specialty department stores primarily in small towns and rural communities in the United States. The company sells moderately priced and brand name apparel, accessories, cosmetics, footwear, and home goods through its department stores, off-price stores, and e-commerce Website, as well as through private label credit card and loyalty programs. As of September 17, 2019, it operated 625 BEALLS, GOODY'S, PALAIS ROYAL, PEEBLES, and STAGE specialty department stores; and 158 GORDMANS off-price stores. The company was founded in 1988 and is headquartered in Houston, Texas. On May 10, 2020, Stage Stores, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The plan was later approved as Chapter 11 liquidation on August 14, 2020.