Analyzing OneSpaWorld (OSW) and Its Peers

OneSpaWorld (NASDAQ:OSW) is one of 52 public companies in the “LEISURE&REC SVS” industry, but how does it contrast to its peers? We will compare OneSpaWorld to similar companies based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, earnings, valuation and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OneSpaWorld	7.41%	15.28%	11.19%
OneSpaWorld Competitors	-90.29%	-69.36%	-9.37%

Volatility & Risk

OneSpaWorld has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, OneSpaWorld’s peers have a beta of 0.65, meaning that their average share price is 35% less volatile than the S&P 500.

Institutional & Insider Ownership

96.0% of OneSpaWorld shares are held by institutional investors. Comparatively, 57.2% of shares of all “LEISURE&REC SVS” companies are held by institutional investors. 5.0% of OneSpaWorld shares are held by insiders. Comparatively, 21.4% of shares of all “LEISURE&REC SVS” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
OneSpaWorld	$895.02 million	$72.86 million	33.41
OneSpaWorld Competitors	$3.98 billion	$328.73 million	32.93

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

Analyst Ratings

This is a summary of recent recommendations for OneSpaWorld and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneSpaWorld	0	0	5	0	3.00
OneSpaWorld Competitors	531	1567	3006	49	2.50

OneSpaWorld currently has a consensus target price of $21.25, suggesting a potential downside of 0.61%. As a group, “LEISURE&REC SVS” companies have a potential upside of 11.17%. Given OneSpaWorld’s peers higher possible upside, analysts clearly believe OneSpaWorld has less favorable growth aspects than its peers.

Dividends

OneSpaWorld pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. OneSpaWorld pays out 25.0% of its earnings in the form of a dividend. As a group, “LEISURE&REC SVS” companies pay a dividend yield of 2.3% and pay out 50.5% of their earnings in the form of a dividend.

Summary

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

About OneSpaWorld

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.