LI NING Co Ltd/ADR (OTCMKTS: LNNGY) and Sequential Brands Group (NASDAQ:SQBG) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.
Institutional & Insider Ownership
45.3% of Sequential Brands Group shares are held by institutional investors. 29.8% of Sequential Brands Group shares are held 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.
This is a summary of current ratings for LI NING Co Ltd/ADR and Sequential Brands Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|LI NING Co Ltd/ADR||0||0||0||0||N/A|
|Sequential Brands Group||0||3||2||0||2.40|
Sequential Brands Group has a consensus target price of $4.80, suggesting a potential upside of 131.88%. Given Sequential Brands Group’s higher possible upside, analysts plainly believe Sequential Brands Group is more favorable than LI NING Co Ltd/ADR.
This table compares LI NING Co Ltd/ADR and Sequential Brands Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|LI NING Co Ltd/ADR||N/A||N/A||N/A|
|Sequential Brands Group||-112.42%||5.81%||2.05%|
Earnings & Valuation
This table compares LI NING Co Ltd/ADR and Sequential Brands Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|LI NING Co Ltd/ADR||$1.31 billion||1.73||$76.24 million||$0.77||33.77|
|Sequential Brands Group||$167.46 million||0.79||-$185.71 million||$0.44||4.70|
LI NING Co Ltd/ADR has higher revenue and earnings than Sequential Brands Group. Sequential Brands Group is trading at a lower price-to-earnings ratio than LI NING Co Ltd/ADR, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
LI NING Co Ltd/ADR has a beta of -0.76, suggesting that its stock price is 176% less volatile than the S&P 500. Comparatively, Sequential Brands Group has a beta of -0.27, suggesting that its stock price is 127% less volatile than the S&P 500.
Sequential Brands Group beats LI NING Co Ltd/ADR on 7 of the 12 factors compared between the two stocks.
LI NING Co Ltd/ADR Company Profile
Li Ning Company Limited engages in the research, development, design, manufacture, marketing, distribution, and retail of sporting goods in the People's Republic of China. The company offers sporting goods, including footwear, apparel, equipment, and accessories for professional and leisure purposes primarily under the LI-NING brand. It also develops, manufactures, markets, distributes, and/or sells outdoor sports products under the AIGLE brand; fashionable fitness products for dance and yoga under the Danskin brand; and sports fashion products under the Lotto brand, as well as badminton equipment under the Kason brand. As of December 31, 2016, the company operated 6,440 LI-NING brand conventional stores, flagship stores, factory outlets, and discount stores. Li Ning Company Limited was incorporated in 2004 and is headquartered in Beijing, the People's Republic of China.
Sequential Brands Group Company Profile
Sequential Brands Group, Inc. owns, promotes, markets, and licenses a portfolio of consumer brands in the United States and internationally. It offers products in the apparel, footwear, eyewear, fashion accessories, and home goods categories under the Jessica Simpson, AND1, Avia, GAIAM, Joe's Jeans, Ellen Tracy, Emeril Lagasse, William Rast, Heelys, Revo, Caribbean Joe, DVS, The Franklin Mint, Linens N Things, SPRI, Nevados, and FUL brand names; and food, wine, magazines, books, and other print and digital content categories under the Martha Stewart brand name. The company licenses its brands through various distribution channels to retailers, wholesalers, and distributors. Sequential Brands Group, Inc. was incorporated in 1982 and is headquartered in New York, New York.
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