Luxottica Group (OTCMKTS: LUXTY) and National Vision (NASDAQ:EYE) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Valuation & Earnings
This table compares Luxottica Group and National Vision’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Luxottica Group||$10.35 billion||3.03||$1.17 billion||$2.00||32.37|
|National Vision||$1.38 billion||1.76||$45.82 million||$0.53||61.28|
Institutional and Insider Ownership
0.5% of Luxottica Group shares are held by institutional investors. Comparatively, 97.4% of National Vision shares are held by institutional investors. 75.0% of Luxottica Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of current recommendations for Luxottica Group and National Vision, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
National Vision has a consensus target price of $35.50, suggesting a potential upside of 9.30%. Given National Vision’s stronger consensus rating and higher probable upside, analysts clearly believe National Vision is more favorable than Luxottica Group.
This table compares Luxottica Group and National Vision’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Luxottica Group pays an annual dividend of $0.76 per share and has a dividend yield of 1.2%. National Vision does not pay a dividend. Luxottica Group pays out 38.0% of its earnings in the form of a dividend.
Luxottica Group Company Profile
Luxottica Group S.p.A., together with its subsidiaries, provides fashion, luxury, sports, and performance eyewear worldwide. It operates through two segments, Manufacturing and Wholesale Distribution, and Retail Distribution. The Manufacturing and Wholesale Distribution segment engages in the design, manufacture, wholesale distribution, and marketing of proprietary and designer lines of prescription frames and sunglasses, as well as performance optics products. This segment offers its products under proprietary brands, such as Ray-Ban, Oakley, Vogue Eyewear, Persol, Oliver Peoples, Alain Mikli, and Arnette; and licensed brands, including Giorgio Armani, Emporio Armani, Armani Exchange, Brooks Brothers, Burberry, Bulgari, Chanel, Coach, Dolce&Gabbana, DKNY, Michael Kors, Paul Smith Spectacles, Prada, Miu Miu, Ralph Lauren, Polo Ralph Lauren, Ralph, Starck Eyes, Tiffany & Co, Tory Burch, Valentino, Versace, and Ferrari. The Retail Distribution segment operates prescription eyewear stores primarily under its retail brands, including LensCrafters, Sunglass Hut, Pearle Vision, OPSM, Laubman & Pank, GMO, David Clulow, Salmoiraghi & Viganò, Ray-Ban, Oakley, Oliver Peoples and Alain Mikli stores, The Optical Shop of Aspen, and ILORI; and licensed brands, such as Sears Optical and Target Optical. As of May 16, 2017, it owned, operated, and franchised a network of approximately 8,000 stores. The company was founded in 1961 and is headquartered in Milan, Italy. Luxottica Group S.p.A. is a subsidiary of Delfin S.à r.l.
National Vision Company Profile
National Vision Holdings, Inc., through its subsidiaries, operates as an optical retailer primarily in the United States. The company operates in two segments, Owned & Host and Legacy. It offers eyeglasses and contact lenses under the America's Best, Eyeglass World, Walmart Vision Center, Vista Optical Fred Meyer, and Vista Optical Military brand stores, as well as provides optometric services. As of December 30, 2017, the company operated 1,013 retail stores across 5 brands, as well as 18 consumer Websites. National Vision Holdings, Inc. was founded in 1990 and is based in Duluth, Georgia.
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