Sony (NYSE:SONY) & Garmin (NYSE:GRMN) Head-To-Head Contrast

Sony (NYSE:SONY) and Garmin (NYSE:GRMN) are both large-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Risk and Volatility

Sony has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Garmin has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Dividends

Sony pays an annual dividend of $0.11 per share and has a dividend yield of 0.5%. Garmin pays an annual dividend of $4.20 per share and has a dividend yield of 1.4%. Sony pays out -55.0% of its earnings in the form of a dividend. Garmin pays out 46.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Garmin has increased its dividend for 8 consecutive years. Garmin is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Sony and Garmin, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sony	1	2	4	0	2.43
Garmin	0	4	2	1	2.57

Sony currently has a consensus target price of $22.00, indicating a potential downside of 5.70%. Garmin has a consensus target price of $289.20, indicating a potential downside of 2.02%. Given Garmin’s stronger consensus rating and higher possible upside, analysts clearly believe Garmin is more favorable than Sony.

Institutional and Insider Ownership

14.1% of Sony shares are owned by institutional investors. Comparatively, 81.6% of Garmin shares are owned by institutional investors. 7.0% of Sony shares are owned by company insiders. Comparatively, 14.8% of Garmin 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.

Profitability

This table compares Sony and Garmin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sony	-2.61%	12.20%	3.95%
Garmin	24.47%	20.95%	17.06%

Earnings & Valuation

This table compares Sony and Garmin”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sony	$82.90 billion	1.66	-$2.16 billion	($0.20)	-116.65
Garmin	$7.25 billion	7.86	$1.66 billion	$8.97	32.91

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

Summary

Garmin beats Sony on 14 of the 18 factors compared between the two stocks.

About Sony

Sony Group Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets in Japan, the United States, Europe, China, the Asia-Pacific, and internationally. The company distributes software titles and add-on content through digital networks; network services related to game, video, and music content; and home gaming consoles, packaged and game software, and peripheral devices. It also develops, produces, markets, and distributes recorded music; publishes music; and produces and distributes animation titles, game applications, and various services for music and visual products. In addition, the company produces, acquires, and distributes live-action and animated motion pictures for theatrical release, as well as scripted and animated series, unscripted reality or light entertainment, daytime serials, game shows, television movies, and miniseries and other television programs; operation of television networks and direct-to-consumer streaming services; operates a visual effects and animation unit; and manages a studio facility. Further, it researches, develops, designs, produces, markets, distributes, sells, and services televisions, and video and sound products; interchangeable lens, as well as compact digital, and consumer and professional video cameras; projectors and medical equipment; mobile phones, accessories, and applications; and metal oxide semiconductor image sensors, charge-coupled devices, integration systems, and other semiconductors. Additionally, it offers Internet broadband network services; recording media, and storage media products; and life and non-life insurance, banking, and other services, as well as creates and distributes content for PCs and mobile phones. The company was formerly known as Sony Corporation and changed its name to Sony Group Corporation in April 2021. Sony Group Corporation was incorporated in 1946 and is headquartered in Tokyo, Japan.

About Garmin

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform. The company's Outdoor segment offers adventure watches, outdoor handhelds and satellite communicators, golf devices, consumer automotive devices, and dog devices, as well as InReach and Gramin response communication device. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions, including integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponders, weather information and avoidance solutions, datalink and connectivity solutions, and various services. The company's Marine segment provides chartplotters and multi-function displays, cartography products, fishfinders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, audio products and accessories, digital switching products, and trolling motors. Its Auto segment offers embedded domain controllers and infotainment units; and software, map database, cameras, wearables, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.