Li Ning (OTCMKTS:LNNGY) & ON (NYSE:ONON) Financial Survey

Li Ning (OTCMKTS:LNNGY) and ON (NYSE:ONON) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current recommendations and price targets for Li Ning and ON, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Li Ning	1	0	0	0	1.00
ON	3	1	19	1	2.75

ON has a consensus target price of $63.65, suggesting a potential upside of 53.47%. Given ON’s stronger consensus rating and higher possible upside, analysts clearly believe ON is more favorable than Li Ning.

Profitability

This table compares Li Ning and ON’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Li Ning	N/A	N/A	N/A
ON	4.45%	8.75%	5.10%

Institutional and Insider Ownership

36.4% of ON shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Li Ning and ON”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Li Ning	$3.99 billion	1.42	$419.10 million	N/A	N/A
ON	$2.63 billion	9.92	$275.23 million	$0.45	92.17

Li Ning has higher revenue and earnings than ON.

Risk and Volatility

Li Ning has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, ON has a beta of 2.19, meaning that its share price is 119% more volatile than the S&P 500.

Summary

ON beats Li Ning on 10 of the 12 factors compared between the two stocks.

About Li Ning

Li Ning Company Limited, a sports brand company, engages in the research and development, design, manufacture, marketing, distribution, and retail of sporting goods in the People’s Republic of China. The company offers sporting goods, including professional and leisure footwear, apparel, equipment, and accessories under the LI-NING brand. It also develops, manufactures, markets, distributes, and/or sells outdoor sports products under the AIGLE brand; table tennis products under the Double Happiness brand name; fashionable fitness products for dance and yoga under the Danskin brand; and badminton products under the Kason brand name. The company also provides brand licensing, administrative, and property management services. It operates conventional stores, flagship stores, China LI-NING stores, LI-NING 1990 stores, factory outlets, and multi-brand stores under the LI-NING brand. The company was founded in 1990 and is headquartered in Beijing, the People’s Republic of China.

About ON

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.