Analyzing Samsonite Group (OTCMKTS:SMSEY) and Advantage Solutions (NASDAQ:ADV)

Advantage Solutions (NASDAQ:ADV) and Samsonite Group (OTCMKTS:SMSEY) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Volatility & Risk

Advantage Solutions has a beta of 2.19, suggesting that its stock price is 119% more volatile than the S&P 500. Comparatively, Samsonite Group has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Profitability

This table compares Advantage Solutions and Samsonite Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advantage Solutions	-6.97%	-34.40%	-8.04%
Samsonite Group	8.68%	19.92%	5.88%

Institutional and Insider Ownership

49.8% of Advantage Solutions shares are owned by institutional investors. 7.9% of Advantage Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Advantage Solutions and Samsonite Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Solutions	1	1	1	0	2.00
Samsonite Group	0	1	0	2	3.33

Advantage Solutions currently has a consensus target price of $2.00, suggesting a potential upside of 124.87%. Given Advantage Solutions’ higher possible upside, equities research analysts clearly believe Advantage Solutions is more favorable than Samsonite Group.

Valuation & Earnings

This table compares Advantage Solutions and Samsonite Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Solutions	$3.57 billion	0.08	-$326.96 million	($0.75)	-1.19
Samsonite Group	$3.59 billion	0.97	$345.70 million	$1.08	11.57

Samsonite Group has higher revenue and earnings than Advantage Solutions. Advantage Solutions is trading at a lower price-to-earnings ratio than Samsonite Group, indicating that it is currently the more affordable of the two stocks.

Summary

Samsonite Group beats Advantage Solutions on 10 of the 15 factors compared between the two stocks.

About Advantage Solutions

Advantage Solutions Inc. provides business solutions to consumer goods manufacturers and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising and in-store media services. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; retailer-centric services, such as retail experiential and private label services; and digital marketing, and digital media and advertising services. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. The company was founded in 1987 and is headquartered in Irvine, California.

About Samsonite Group

Samsonite International S.A. engages in the design, manufacture, sourcing, and distribution of travel luggage bags in North America, Asia, Europe, and Latin America. The company offers luggage, business, computer, outdoor, casual, and women's bags; and travel accessories and slim protective cases for personal electronic devices primarily under the Samsonite, Tumi, American Tourister, Speck, High Sierra, Gregory, Lipault, Kamiliant, Hartmann, and eBags brands, as well as other owned and licensed brand names. It sells its products through various wholesale distribution channels, as well as through company operated retail stores and e-commerce. The company was founded in 1910 and is based in Luxembourg, Luxembourg.