Japan Tob (OTCMKTS:JAPAY) versus OneSpaWorld (NASDAQ:OSW) Financial Contrast

Japan Tob (OTCMKTS:JAPAY) and OneSpaWorld (NASDAQ:OSW) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of current ratings for Japan Tob and OneSpaWorld, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Japan Tob	1	1	1	0	2.00
OneSpaWorld	0	1	5	0	2.83

Japan Tob currently has a consensus price target of $17.00, suggesting a potential downside of 25.80%. OneSpaWorld has a consensus price target of $31.25, suggesting a potential upside of 31.63%. Given OneSpaWorld’s stronger consensus rating and higher probable upside, analysts plainly believe OneSpaWorld is more favorable than Japan Tob.

Earnings & Valuation

This table compares Japan Tob and OneSpaWorld”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Japan Tob	$23.20 billion	3.51	$3.42 billion	$1.37	16.72
OneSpaWorld	$961.00 million	2.51	$71.62 million	$0.79	30.05

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

Profitability

This table compares Japan Tob and OneSpaWorld’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Japan Tob	N/A	N/A	N/A
OneSpaWorld	8.02%	18.36%	14.28%

Volatility & Risk

Japan Tob has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, OneSpaWorld has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Insider & Institutional Ownership

96.0% of OneSpaWorld shares are owned by institutional investors. 3.6% of OneSpaWorld shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Japan Tob pays an annual dividend of $0.53 per share and has a dividend yield of 2.3%. OneSpaWorld pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Japan Tob pays out 38.7% of its earnings in the form of a dividend. OneSpaWorld pays out 25.3% 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.

Summary

OneSpaWorld beats Japan Tob on 11 of the 16 factors compared between the two stocks.

About Japan Tob

Japan Tobacco Inc., a tobacco company, manufactures and sells tobacco products, pharmaceuticals, and processed foods in Japan and internationally. The company operates through three segments: Tobacco Business, Pharmaceutical, and Processed Food. It offers tobacco products, such as cigarettes, heat-not-burn tobacco products, E-vapor products, fine cut tobacco products, cigars, pipes, smokeless tobacco products, and hookah and kretek products. The company also provides reduced-risk products, including infused tobacco capsules and heated tobacco sticks. In addition, it researches and develops, manufactures, and sells prescription drugs for the therapeutic areas, such as cardiovascular, kidney and metabolism, immunity/inflammation, and central nervous system. Further, the company provides frozen and room-temperature products, such as frozen udon noodles, packed rice, and frozen okonomiyaki; bakery products; and seasonings, including yeast extracts, assembled, kelp and bonito extracts, and oyster sauces. It offers its products under the Winston, Camel, MEVIUS, and LD brands. Japan Tobacco Inc. was incorporated in 1985 and is headquartered in Tokyo, Japan.

About OneSpaWorld

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.