OneSpaWorld (OSW) and The Competition Critical Analysis

OneSpaWorld (NASDAQ:OSW) is one of 165 public companies in the “Diversified Consumer Services” industry, but how does it compare to its competitors? We will compare OneSpaWorld to related companies based on the strength of its institutional ownership, profitability, dividends, valuation, analyst recommendations, earnings and risk.

Dividends

OneSpaWorld pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. OneSpaWorld pays out 23.8% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 6.0% and pay out 36.4% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares OneSpaWorld and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
OneSpaWorld	$961.00 million	$71.62 million	36.54
OneSpaWorld Competitors	$3.26 billion	$221.82 million	15.38

OneSpaWorld’s competitors have higher revenue and earnings than OneSpaWorld. OneSpaWorld is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

96.0% of OneSpaWorld shares are held by institutional investors. Comparatively, 49.0% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 3.6% of OneSpaWorld shares are held by insiders. Comparatively, 19.5% of shares of all “Diversified Consumer Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares OneSpaWorld and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OneSpaWorld	8.26%	18.93%	14.90%
OneSpaWorld Competitors	-3.82%	-29.65%	2.33%

Analyst Recommendations

This is a summary of recent ratings and price targets for OneSpaWorld and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneSpaWorld	0	1	5	0	2.83
OneSpaWorld Competitors	1442	3453	5298	197	2.41

OneSpaWorld currently has a consensus target price of $34.00, indicating a potential upside of 10.79%. As a group, “Diversified Consumer Services” companies have a potential upside of 64.46%. Given OneSpaWorld’s competitors higher possible upside, analysts plainly believe OneSpaWorld has less favorable growth aspects than its competitors.

Risk and Volatility

OneSpaWorld has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, OneSpaWorld’s competitors have a beta of 0.53, indicating that their average stock price is 47% less volatile than the S&P 500.

Summary

OneSpaWorld beats its competitors on 9 of the 15 factors compared.

About OneSpaWorld

OneSpaWorld Holdings Limited provides spa, wellness, beauty, and fitness services primarily aboard cruise ships and at resort destinations. Its offerings include massage and other spa treatments, salon services, fitness programs, and wellness experiences. The company also sells beauty, skincare, and wellness products through its onboard and resort operations. Its services are delivered through partnerships with cruise lines and hospitality operators, serving travelers across destinations worldwide.