AO World (AO) Competitors

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

Do analysts prefer AO or ASC?

AO World currently has a consensus target price of GBX 135, indicating a potential upside of 42.56%. ASOS has a consensus target price of GBX 445, indicating a potential upside of 45.90%. Given ASOS's higher probable upside, analysts clearly believe ASOS is more favorable than AO World.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AO World	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00
ASOS	1 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.33

Do institutionals and insiders believe in AO or ASC?

42.1% of AO World shares are held by institutional investors. Comparatively, 32.0% of ASOS shares are held by institutional investors. 47.1% of AO World shares are held by company insiders. Comparatively, 51.4% of ASOS shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Which has better earnings and valuation, AO or ASC?

AO World has higher earnings, but lower revenue than ASOS. ASOS 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
AO World	£1.03B	0.53	£25.59M	£4.39	21.59
ASOS	£2.92B	0.13	-£340.23M	-£282.21	-1.08

Does the media prefer AO or ASC?

In the previous week, AO World had 14 more articles in the media than ASOS. MarketBeat recorded 14 mentions for AO World and 0 mentions for ASOS. ASOS's average media sentiment score of 0.00 beat AO World's score of -0.07 indicating that ASOS is being referred to more favorably in the news media.

Company	Overall Sentiment
AO World	Neutral
ASOS	Neutral

Which has more volatility and risk, AO or ASC?

AO World has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, ASOS has a beta of 2.86, meaning that its share price is 186% more volatile than the S&P 500.

Is AO or ASC more profitable?

AO World has a net margin of 2.48% compared to ASOS's net margin of -11.66%. AO World's return on equity of 18.96% beat ASOS's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
AO World	2.48%	18.96%	5.02%
ASOS	-11.66%	-59.37%	-5.44%

Does the MarketBeat Community favor AO or ASC?

ASOS received 644 more outperform votes than AO World when rated by MarketBeat users. Likewise, 68.81% of users gave ASOS an outperform vote while only 64.17% of users gave AO World an outperform vote.

Company	Underperform	Outperform
AO World	Outperform Votes 342 64.17%	Underperform Votes 191 35.83%
ASOS	Outperform Votes 986 68.81%	Underperform Votes 447 31.19%

Summary

AO World beats ASOS on 10 of the 17 factors compared between the two stocks.