ON (NYSE:ONON) & a.k.a. Brands (NYSE:AKA) Financial Review

ON (NYSE:ONON) and a.k.a. Brands (NYSE:AKA) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Analyst Recommendations

This is a summary of current ratings for ON and a.k.a. Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ON	2	3	17	2	2.79
a.k.a. Brands	1	2	1	0	2.00

ON presently has a consensus target price of $58.40, suggesting a potential upside of 62.20%. a.k.a. Brands has a consensus target price of $19.00, suggesting a potential upside of 72.88%. Given a.k.a. Brands’ higher possible upside, analysts clearly believe a.k.a. Brands is more favorable than ON.

Earnings and Valuation

This table compares ON and a.k.a. Brands”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ON	$3.01 billion	7.62	$245.87 million	$0.72	50.01
a.k.a. Brands	$600.21 million	0.20	-$31.43 million	($2.93)	-3.75

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

Institutional & Insider Ownership

36.4% of ON shares are held by institutional investors. Comparatively, 55.3% of a.k.a. Brands shares are held by institutional investors. 18.2% of a.k.a. Brands shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares ON and a.k.a. Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ON	6.59%	13.25%	7.56%
a.k.a. Brands	-5.24%	-23.52%	-6.31%

Volatility & Risk

ON has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500. Comparatively, a.k.a. Brands has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.

Summary

ON beats a.k.a. Brands on 12 of the 15 factors compared between the two stocks.

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.

About a.k.a. Brands

a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. The company offers streetwear apparel, dresses, tops, bottoms, shoes, headwear, and accessories through its online stores under the Princess Polly, Petal & Pup, Culture Kings, and mnml brands. It also operates physical stores under the Culture Kings brand. The company was founded in 2018 and is headquartered in San Francisco, California.