Fred’s (OTCMKTS:FREDQ) vs. SEA (NYSE:SE) Head to Head Review

SEA (NYSE:SE) and Fred’s (OTCMKTS:FREDQ) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Earnings & Valuation

This table compares SEA and Fred’s”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SEA	$22.94 billion	3.13	$1.58 billion	$2.59	45.41
Fred’s	N/A	N/A	N/A	N/A	N/A

SEA has higher revenue and earnings than Fred’s.

Institutional & Insider Ownership

59.5% of SEA shares are owned by institutional investors. 0.2% of SEA shares are owned by company insiders. Comparatively, 27.2% of Fred’s shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares SEA and Fred’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SEA	5.98%	13.54%	5.59%
Fred’s	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for SEA and Fred’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEA	1	3	8	1	2.69
Fred’s	0	0	0	0	0.00

SEA presently has a consensus price target of $151.90, suggesting a potential upside of 29.16%. Given SEA’s stronger consensus rating and higher possible upside, analysts clearly believe SEA is more favorable than Fred’s.

Summary

SEA beats Fred’s on 9 of the 10 factors compared between the two stocks.

About SEA

Sea Ltd. is an internet and mobile platform company, which engages in the provision of online gaming services. It operates through the following segments: Digital Entertainment, E-Commerce, and Digital Financial Services. The Digital Entertainment segment offers and develops mobile and PC online games. The E-Commerce segment manages a third-party marketplace through the Shopee mobile app and websites that connect buyers and sellers. The Digital Financial Services segment includes a variety of payment services and loans to individuals and businesses through SeaMoney. Sea was founded by Xiao Dong Li, Gang Ye, and Jing Ye Chen on May 8, 2009 and is headquartered in Singapore.

About Fred’s

Fred's, Inc., together with its subsidiaries, sells general merchandise through its retail discount stores and full service pharmacies. The company, through its stores, offers health, beauty, and personal care products; household cleaning supplies, disposable diapers, pet foods, and paper products; and various general merchandise, and food and beverage products to low, middle, and fixed income families located in small- to medium-sized towns. It also sells general merchandise to franchised Fred's stores. As of February 3, 2018, the company operated approximately 584 retail stores, 348 pharmacies, and 12 franchised stores located in 15 states primarily in the Southeastern United States. Fred's, Inc. was founded in 1947 and is headquartered in Memphis, Tennessee.