Head to Head Comparison: ON (NYSE:ONON) versus Genesco (NYSE:GCO)

ON (NYSE:ONON) and Genesco (NYSE:GCO) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Analyst Ratings

This is a breakdown of recent ratings and target prices for ON and Genesco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ON	2	3	17	2	2.79
Genesco	1	3	0	1	2.20

ON currently has a consensus price target of $59.86, indicating a potential upside of 35.04%. Genesco has a consensus price target of $36.00, indicating a potential upside of 24.10%. Given ON’s stronger consensus rating and higher probable upside, analysts clearly believe ON is more favorable than Genesco.

Profitability

This table compares ON and Genesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ON	7.45%	14.81%	8.48%
Genesco	N/A	2.11%	0.78%

Institutional and Insider Ownership

36.4% of ON shares are owned by institutional investors. Comparatively, 94.5% of Genesco shares are owned by institutional investors. 23.1% of Genesco shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares ON and Genesco”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ON	$2.63 billion	10.57	$275.23 million	$0.77	57.57
Genesco	$2.33 billion	0.13	-$18.89 million	($0.18)	-161.17

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

Risk & Volatility

ON has a beta of 2.15, indicating that its share price is 115% more volatile than the S&P 500. Comparatively, Genesco has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500.

Summary

ON beats Genesco on 13 of the 15 factors compared between the two stocks.

About ON

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.

About Genesco

Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories in the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children. Its Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear, as well as sells footwear through e-commerce. The Johnston & Murphy Group segment involved in the retail and e-commerce operations; and wholesale distribution of men’s dress and casual footwear, apparel, and accessories, as well as women’s footwear and accessories. Its Genesco Brands Group segment markets footwear under the Levi’s, Dockers, and G.H. Bass brands for men, women, and children, as well as designs and manufactures the STARTER brands footwear. The company operates through Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy brand names; and e-commerce websites, including journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, littleburgundyshoes.com, johnstonmurphy.ca, nashvilleshoewarehouse.com, and dockersshoes.com. Genesco Inc. was incorporated in 1934 and is headquartered in Nashville, Tennessee.