Sonder (NASDAQ:SOND – Get Free Report) and Six Flags Entertainment (NYSE:FUN – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Profitability
This table compares Sonder and Six Flags Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sonder | -42.27% | N/A | -22.67% |
| Six Flags Entertainment | -56.44% | 9.64% | 1.70% |
Insider & Institutional Ownership
45.9% of Sonder shares are held by institutional investors. Comparatively, 64.7% of Six Flags Entertainment shares are held by institutional investors. 3.8% of Sonder shares are held by insiders. Comparatively, 1.8% of Six Flags Entertainment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sonder | $621.27 million | 0.00 | -$224.09 million | ($22.08) | -0.01 |
| Six Flags Entertainment | $2.71 billion | 0.54 | -$231.16 million | ($17.72) | -0.81 |
Sonder has higher earnings, but lower revenue than Six Flags Entertainment. Six Flags Entertainment is trading at a lower price-to-earnings ratio than Sonder, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for Sonder and Six Flags Entertainment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sonder | 1 | 0 | 0 | 0 | 1.00 |
| Six Flags Entertainment | 2 | 4 | 9 | 0 | 2.47 |
Six Flags Entertainment has a consensus target price of $28.07, indicating a potential upside of 96.25%. Given Six Flags Entertainment’s stronger consensus rating and higher probable upside, analysts clearly believe Six Flags Entertainment is more favorable than Sonder.
Risk & Volatility
Sonder has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, Six Flags Entertainment has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.
Summary
Six Flags Entertainment beats Sonder on 9 of the 14 factors compared between the two stocks.
About Sonder
Sonder Holdings Inc. engages in the hospitality business. It operates and manages properties comprising 1-, 2-, and 3+ bedroom; and studio apartments, as well as 1-bedroom hotel rooms for leisure travelers and families, digital nomads, and business travelers in North America, Europe, and the Middle East. The company is headquartered in San Francisco, California.
About Six Flags Entertainment
Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas. The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort. Cedar Fair, L.P. was founded in 1983 and is based in Sandusky, Ohio.
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