Head-To-Head Analysis: ON (NYSE:ONON) & Boot Barn (NYSE:BOOT)

ON (NYSE:ONON) and Boot Barn (NYSE:BOOT) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Volatility and Risk

ON has a beta of 2.1, indicating that its share price is 110% more volatile than the S&P 500. Comparatively, Boot Barn has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for ON and Boot Barn, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ON	1	4	15	2	2.82
Boot Barn	0	2	12	0	2.86

ON presently has a consensus price target of $55.05, indicating a potential upside of 48.09%. Boot Barn has a consensus price target of $230.83, indicating a potential upside of 37.52%. Given ON’s higher probable upside, equities analysts plainly believe ON is more favorable than Boot Barn.

Valuation & Earnings

This table compares ON and Boot Barn”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ON	$3.64 billion	6.52	$245.87 million	$0.93	39.97
Boot Barn	$2.25 billion	2.26	$225.88 million	$7.35	22.84

ON has higher revenue and earnings than Boot Barn. Boot Barn is trading at a lower price-to-earnings ratio than ON, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ON and Boot Barn’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ON	7.92%	15.72%	8.99%
Boot Barn	10.02%	18.15%	9.82%

Insider and Institutional Ownership

36.4% of ON shares are held by institutional investors. 68.6% of ON shares are held by insiders. Comparatively, 0.7% of Boot Barn shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

ON beats Boot Barn on 10 of the 15 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 Boot Barn

Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing. The company also provides gifts and home merchandise. The company also sells its products through e-commerce websites, including bootbarn.com; sheplers.com; and countryoutfitter.com. The company was formerly known as WW Top Investment Corporation and changed its name to Boot Barn Holdings, Inc. in June 2014. Boot Barn Holdings, Inc. was founded in 1978 and is based in Irvine, California.