Head-To-Head Review: Persimmon (OTCMKTS:PSMMY) versus Zepp Health (NYSE:ZEPP)

Persimmon (OTCMKTS:PSMMY) and Zepp Health (NYSE:ZEPP) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Earnings & Valuation

This table compares Persimmon and Zepp Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Persimmon	$4.95 billion	1.02	$376.75 million	N/A	N/A
Zepp Health	$258.90 million	0.28	-$40.07 million	($2.52)	-1.96

Persimmon has higher revenue and earnings than Zepp Health.

Volatility and Risk

Persimmon has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Zepp Health has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500.

Insider & Institutional Ownership

52.6% of Zepp Health shares are owned by institutional investors. 0.6% of Persimmon shares are owned by insiders. Comparatively, 36.0% of Zepp Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Persimmon and Zepp Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Persimmon	N/A	N/A	N/A
Zepp Health	-14.70%	-15.64%	-6.03%

Analyst Recommendations

This is a summary of current ratings and price targets for Persimmon and Zepp Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Persimmon	0	1	5	0	2.83
Zepp Health	1	0	1	0	2.00

Zepp Health has a consensus price target of $53.01, indicating a potential upside of 970.69%. Given Zepp Health’s higher probable upside, analysts clearly believe Zepp Health is more favorable than Persimmon.

Summary

Persimmon beats Zepp Health on 8 of the 12 factors compared between the two stocks.

About Persimmon

Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom. The company offers family housing under the Persimmon Homes brand name; housing under the Charles Church brand name; and social housing under the Westbury Partnerships brand name. It also provides broadband services under the FibreNest brand; and timber frame, insulated wall panels, and roof cassettes under the brand Space4. Further, it offers concrete bricks and roof tile. Persimmon Plc was founded in 1972 and is headquartered in York, the United Kingdom.

About Zepp Health

Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.