Head to Head Review: Pool (NASDAQ:POOL) vs. Simulated Environment Concepts (OTCMKTS:SMEV)

Simulated Environment Concepts (OTCMKTS:SMEV) and Pool (NASDAQ:POOL) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Profitability

This table compares Simulated Environment Concepts and Pool’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simulated Environment Concepts	N/A	N/A	N/A
Pool	7.79%	30.99%	11.51%

Analyst Ratings

This is a summary of current ratings for Simulated Environment Concepts and Pool, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simulated Environment Concepts	0	0	0	0	0.00
Pool	0	5	2	0	2.29

Pool has a consensus price target of $342.14, indicating a potential upside of 11.86%. Given Pool’s stronger consensus rating and higher probable upside, analysts plainly believe Pool is more favorable than Simulated Environment Concepts.

Earnings & Valuation

This table compares Simulated Environment Concepts and Pool”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simulated Environment Concepts	N/A	N/A	N/A	N/A	N/A
Pool	$5.31 billion	2.15	$434.33 million	$10.84	28.22

Pool has higher revenue and earnings than Simulated Environment Concepts.

Volatility and Risk

Simulated Environment Concepts has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Pool has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Insider and Institutional Ownership

0.2% of Simulated Environment Concepts shares are held by institutional investors. Comparatively, 99.0% of Pool shares are held by institutional investors. 62.6% of Simulated Environment Concepts shares are held by company insiders. Comparatively, 3.0% of Pool shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Pool beats Simulated Environment Concepts on 9 of the 10 factors compared between the two stocks.

About Simulated Environment Concepts

Simulated Environment Concepts, Inc. engages in the development and manufacture of medical, health, and wellness equipments in the United States and internationally. Its products include SpaCapsule, a robotic massage therapy system used for medical rehabilitation, relaxation, weight loss, slimming, cellulite management, and general wellness; and PTjetCapsule. The company also offers components, parts, accessories, and peripheral massage and health related items. Its products are used in various environments, such as corporate employee lounges, relaxation centers, gyms and health clubs, doctor's offices, hotels, tanning and beauty salons/spas, luxury accommodations, gulf clubs, ski lounges, shopping centers and malls, airports, cruise ships, luxury yachts, and homes. Simulated Environment Concepts, Inc. was founded in 1993 and is based in Miami, Florida.

About Pool

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; and building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling. It also provides pool equipment and components for new pool construction and the remodeling of existing pools; irrigation and related products, such as irrigation system components, and professional turf care equipment and supplies; commercial products, including heaters, safety equipment, commercial decking equipment, and commercial pumps and filters. In addition, the company offers fiberglass pools, and hot tubs and packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; and other pool construction and recreational products comprising discretionary recreational and related outdoor living products, such as grills and components for outdoor kitchens. It serves swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; irrigation construction and landscape maintenance contractors; and commercial pool operators and pool contractors. Pool Corporation was incorporated in 1993 and is headquartered in Covington, Louisiana.