AO World (AO) Competitors

THG (LON:THG) and AO World (LON:AO) are both small-cap consumer cyclical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, media sentiment, analyst recommendations and risk.

Which has stronger earnings and valuation, THG or AO?

AO World has lower revenue, but higher earnings than THG. THG is trading at a lower price-to-earnings ratio than AO World, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
THG	£2.00B	0.21	-£235.23M	-£17.76	-1.78
AO World	£1.03B	0.50	£25.59M	£4.39	20.41

Which has more risk & volatility, THG or AO?

THG has a beta of 2.4, indicating that its stock price is 140% more volatile than the S&P 500. Comparatively, AO World has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Do insiders & institutionals have more ownership in THG or AO?

31.4% of THG shares are owned by institutional investors. Comparatively, 42.1% of AO World shares are owned by institutional investors. 31.6% of THG shares are owned by company insiders. Comparatively, 47.1% of AO World shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Is THG or AO more profitable?

AO World has a net margin of 2.48% compared to THG's net margin of -11.77%. AO World's return on equity of 18.96% beat THG's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
THG	-11.77%	-24.45%	-2.68%
AO World	2.48%	18.96%	5.02%

Do analysts prefer THG or AO?

THG currently has a consensus price target of GBX 48.67, suggesting a potential upside of 54.30%. AO World has a consensus price target of GBX 105, suggesting a potential upside of 17.32%. Given THG's higher probable upside, equities analysts clearly believe THG is more favorable than AO World.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
THG	1 Sell rating(s)	1 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.00
AO World	0 Sell rating(s)	1 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00

Does the media prefer THG or AO?

In the previous week, THG had 2 more articles in the media than AO World. MarketBeat recorded 2 mentions for THG and 0 mentions for AO World. THG's average media sentiment score of 0.06 beat AO World's score of 0.00 indicating that THG is being referred to more favorably in the media.

Company	Overall Sentiment
THG	Neutral
AO World	Neutral

Summary

AO World beats THG on 9 of the 15 factors compared between the two stocks.