Service Corporation International (NYSE: SCI) and Weight Watchers International (NYSE:WTW) are both mid-cap consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Institutional and Insider Ownership
86.3% of Service Corporation International shares are owned by institutional investors. Comparatively, 85.1% of Weight Watchers International shares are owned by institutional investors. 6.2% of Service Corporation International shares are owned by company insiders. Comparatively, 15.8% of Weight Watchers International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Service Corporation International and Weight Watchers International’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Service Corporation International||$3.08 billion||2.12||$820.15 million||$1.85||18.86|
|Weight Watchers International||$1.22 billion||2.52||$292.37 million||$1.56||30.76|
Service Corporation International has higher revenue and earnings than Weight Watchers International. Service Corporation International is trading at a lower price-to-earnings ratio than Weight Watchers International, indicating that it is currently the more affordable of the two stocks.
This table compares Service Corporation International and Weight Watchers International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Service Corporation International||11.59%||24.67%||2.32%|
|Weight Watchers International||8.52%||-7.70%||7.24%|
This is a breakdown of recent ratings and target prices for Service Corporation International and Weight Watchers International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Service Corporation International||0||0||3||0||3.00|
|Weight Watchers International||1||1||0||0||1.50|
Service Corporation International presently has a consensus target price of $36.33, indicating a potential upside of 4.11%. Weight Watchers International has a consensus target price of $23.00, indicating a potential downside of 52.06%. Given Service Corporation International’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Service Corporation International is more favorable than Weight Watchers International.
Risk & Volatility
Service Corporation International has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Weight Watchers International has a beta of 3.06, suggesting that its share price is 206% more volatile than the S&P 500.
Service Corporation International pays an annual dividend of $0.60 per share and has a dividend yield of 1.7%. Weight Watchers International does not pay a dividend. Service Corporation International pays out 32.4% of its earnings in the form of a dividend. Service Corporation International has increased its dividend for 5 consecutive years.
Service Corporation International beats Weight Watchers International on 11 of the 17 factors compared between the two stocks.
About Service Corporation International
Service Corporation International is a provider of deathcare products and services, with a network of funeral service locations and cemeteries. The Company’s segments include Funeral, Cemetery and Corporate. It conducts both funeral and cemetery operations in the United States and Canada. As December 31, 2016, it operated 1,502 funeral service locations and 470 cemeteries, including 281 funeral service/cemetery combination locations, which are geographically diversified across 45 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. It offers various brands, such as Dignity Memorial, Dignity Planning, National Cremation Society, Advantage Funeral and Cremation Services, and Funeraria del Angel. Its funeral service and cemetery operations consist of funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and related businesses. It sells cemetery property, and funeral and cemetery merchandise and services.
About Weight Watchers International
Weight Watchers International, Inc. is a provider of weight management services. The Company operates globally through a network of Company-owned and franchise operations. The Company’s branded products and services include meetings conducted by its franchisees, digital weight management products provided through its Websites, mobile sites and applications, products sold at meetings, licensed products sold in retail channels and magazine subscriptions and other publications. It operates through four segments: North America, United Kingdom, Continental Europe (CE) and Other. It sells a range of products, including bars, snacks, cookbooks, food and restaurant guides with SmartPoints values, Weight Watchers magazines, SmartPoints calculators and fitness kits, and certain third-party products, such as activity-tracking monitors. It sells its products through its meetings business, online and to its franchisees. It includes a range of nutritional, activity, behavioral and lifestyle tools.
What are top analysts saying about Service Corporation International? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Service Corporation International and related companies.