16 Jun Weight Watchers International (NASDAQ:WW) vs. Service Co. I…
Weight Watchers International (NASDAQ:WW) and Service Co. International (NYSE:SCI) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Volatility & Risk
Weight Watchers International has a beta of 2.39, meaning that its stock price is 139% more volatile than the S&P 500. Comparatively, Service Co. International has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.
Institutional & Insider Ownership
85.2% of Weight Watchers International shares are held by institutional investors. Comparatively, 86.8% of Service Co. International shares are held by institutional investors. 12.0% of Weight Watchers International shares are held by insiders. Comparatively, 5.5% of Service Co. International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Weight Watchers International and Service Co. International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Weight Watchers International||$1.51 billion||0.91||$223.75 million||$3.19||6.45|
|Service Co. International||$3.19 billion||2.63||$447.20 million||$1.79||25.70|
Service Co. International has higher revenue and earnings than Weight Watchers International. Weight Watchers International is trading at a lower price-to-earnings ratio than Service Co. International, indicating that it is currently the more affordable of the two stocks.
Service Co. International pays an annual dividend of $0.72 per share and has a dividend yield of 1.6%. Weight Watchers International does not pay a dividend. Service Co. International pays out 40.2% of its earnings in the form of a dividend. Service Co. International has raised its dividend for 7 consecutive years.
This is a summary of recent ratings and price targets for Weight Watchers International and Service Co. International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Weight Watchers International||2||1||0||0||1.33|
|Service Co. International||0||0||3||0||3.00|
Weight Watchers International currently has a consensus target price of $19.00, suggesting a potential downside of 7.72%. Service Co. International has a consensus target price of $48.00, suggesting a potential upside of 4.35%. Given Service Co. International’s stronger consensus rating and higher possible upside, analysts plainly believe Service Co. International is more favorable than Weight Watchers International.
This table compares Weight Watchers International and Service Co. International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Weight Watchers International||11.84%||-20.48%||12.29%|
|Service Co. International||13.92%||21.13%||2.58%|
Service Co. International beats Weight Watchers International on 12 of the 17 factors compared between the two stocks.
About Weight Watchers International
Weight Watchers International, Inc. provides weight management services worldwide. The company operates in four segments: North America, Continental Europe, United Kingdom, and Other. It provides a range of products and services comprising nutritional, activity, behavioral, and lifestyle tools and approaches. The company offers various digital subscription products to wellness and weight management business, which provide interactive and personalized resources that allow users to follow its weight management program via its Web-based and mobile app products, including personal coaching products; and allows members to support each other by sharing their experiences with other people on weight management and wellness journeys. Further, it provides various products, including bars, snacks, cookbooks, kitchen tools, and other products. Additionally, the company licenses its trademarks and other intellectual property in food, beverages, and other consumer products and services. It offers products through its e-commerce platform, magazine subscriptions, publishing, and third-party advertising in publications; and through Websites and sales from the By Mail product. The company was founded in 1961 and is headquartered in New York, New York.
About Service Co. International
Service Corporation International provides deathcare products and services in the United States and Canada. The company operates through Funeral and Cemetery segments. Its funeral service and cemetery operations comprise funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and other businesses. The company also provides professional services relating to funerals and cremations, including the use of funeral facilities and motor vehicles; arranging and directing services; and removal, preparation, embalming, cremation, memorialization, and travel protection, as well as catering services. In addition, it offers funeral merchandise, including burial caskets and related accessories, urns and other cremation receptacles, outer burial containers, flowers, online and video tributes, stationery products, casket and cremation memorialization products, and other ancillary merchandise. Further, the company’s cemeteries provide cemetery property interment rights, such as developed lots, lawn crypts, mausoleum spaces, niches, and other cremation memorialization and interment options; and sells cemetery merchandise and services, including memorial markers and bases, outer burial containers, flowers and floral placements, graveside services, merchandise installations, and interments, as well as offers preneed cemetery merchandise and services. Service Corporation International offers its products and services under the Dignity Memorial, Dignity Planning, National Cremation Society, Advantage Funeral and Cremation Services, Funeraria del Angel, Making Everlasting Memories, Neptune Society, and Trident Society brands. As of December 31, 2018, it owned and operated 1,481 funeral service locations; and 481 cemeteries, including 286 funeral service/cemetery combination locations covering 44 states, 8 Canadian provinces, the District of Columbia, and Puerto Rico. The company was founded in 1962 and is headquartered in Houston, Texas.
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