LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTCMKTS:LVMUY) and Sony (NYSE:SNE) are both large-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Profitability
This table compares LVMH Moët Hennessy - Louis Vuitton, Société Européenne and Sony's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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LVMH Moët Hennessy - Louis Vuitton, Société Européenne | N/A | N/A | N/A |
Sony | 11.34% | 19.06% | 3.99% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for LVMH Moët Hennessy - Louis Vuitton, Société Européenne and Sony, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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LVMH Moët Hennessy - Louis Vuitton, Société Européenne | 0 | 1 | 10 | 0 | 2.91 |
Sony | 0 | 2 | 2 | 1 | 2.80 |
Sony has a consensus price target of $100.00, indicating a potential downside of 5.49%. Given LVMH Moët Hennessy - Louis Vuitton, Société Européenne's stronger consensus rating and higher probable upside, analysts plainly believe LVMH Moët Hennessy - Louis Vuitton, Société Européenne is more favorable than Sony.
Institutional & Insider Ownership
0.6% of LVMH Moët Hennessy - Louis Vuitton, Société Européenne shares are owned by institutional investors. Comparatively, 7.8% of Sony shares are owned by institutional investors. 7.0% of Sony shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares LVMH Moët Hennessy - Louis Vuitton, Société Européenne and Sony's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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LVMH Moët Hennessy - Louis Vuitton, Société Européenne | $60.12 billion | 5.33 | $8.03 billion | $3.19 | 39.82 |
Sony | $75.99 billion | 1.70 | $5.36 billion | $4.24 | 24.96 |
LVMH Moët Hennessy - Louis Vuitton, Société Européenne has higher earnings, but lower revenue than Sony. Sony is trading at a lower price-to-earnings ratio than LVMH Moët Hennessy - Louis Vuitton, Société Européenne, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
LVMH Moët Hennessy - Louis Vuitton, Société Européenne has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Sony has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.
Dividends
LVMH Moët Hennessy - Louis Vuitton, Société Européenne pays an annual dividend of $0.80 per share and has a dividend yield of 0.6%. Sony pays an annual dividend of $0.41 per share and has a dividend yield of 0.4%. LVMH Moët Hennessy - Louis Vuitton, Société Européenne pays out 25.1% of its earnings in the form of a dividend. Sony pays out 9.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Sony has increased its dividend for 1 consecutive years.
Summary
Sony beats LVMH Moët Hennessy - Louis Vuitton, Société Européenne on 11 of the 18 factors compared between the two stocks.