AO World (AO) Competitors

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

Which has better valuation and earnings, AO or THG?

AO World has higher earnings, but lower revenue 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
AO World	£1.03B	0.59	£25.59M	£4.39	23.81
THG	£1.69B	0.29	-£235.23M	-£0.10	-379.70

Does the media prefer AO or THG?

In the previous week, AO World and AO World both had 2 articles in the media. THG's average media sentiment score of 1.16 beat AO World's score of 0.23 indicating that THG is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
AO World	1 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
THG	1 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is AO or THG 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
AO World	2.48%	18.96%	5.02%
THG	-11.77%	-24.45%	-2.68%

Do analysts recommend AO or THG?

AO World currently has a consensus target price of GBX 121, indicating a potential upside of 15.90%. THG has a consensus target price of GBX 39.50, indicating a potential upside of 4.03%. Given AO World's stronger consensus rating and higher probable upside, equities research analysts clearly believe AO World is more favorable than THG.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AO World	0 Sell rating(s)	1 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.50
THG	1 Sell rating(s)	0 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.00

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

42.1% of AO World shares are owned by institutional investors. Comparatively, 44.7% of THG shares are owned by institutional investors. 47.1% of AO World shares are owned by insiders. Comparatively, 9.5% of THG shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Which has more risk and volatility, AO or THG?

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

Summary

AO World beats THG on 10 of the 14 factors compared between the two stocks.