Sony (NYSE: SNE) and GoPro (NASDAQ:GPRO) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.
Volatility & Risk
Sony has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, GoPro has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.
Earnings & Valuation
This table compares Sony and GoPro’s top-line revenue, earnings per share and valuation.
||Earnings Per Share
Sony has higher revenue and earnings than GoPro. GoPro is trading at a lower price-to-earnings ratio than Sony, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
7.0% of Sony shares are held by institutional investors. Comparatively, 26.0% of GoPro shares are held by institutional investors. 7.0% of Sony shares are held by insiders. Comparatively, 28.6% of GoPro shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Sony pays an annual dividend of $0.17 per share and has a dividend yield of 0.4%. GoPro does not pay a dividend. Sony pays out 4.6% of its earnings in the form of a dividend. GoPro has increased its dividend for 2 consecutive years.
This is a summary of current ratings and target prices for Sony and GoPro, as reported by MarketBeat.
||Strong Buy Ratings
Sony presently has a consensus price target of $46.92, suggesting a potential downside of 2.93%. GoPro has a consensus price target of $7.55, suggesting a potential upside of 41.65%. Given GoPro’s higher possible upside, analysts plainly believe GoPro is more favorable than Sony.
This table compares Sony and GoPro’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Sony beats GoPro on 13 of the 18 factors compared between the two stocks.
Sony Company Profile
Sony Corporation (Sony) is engaged in the development, design, manufacture and sale of various kinds of electronic equipment, instruments and devices for consumer, professional and industrial markets, as well as game consoles and software. The Company’s segments include Mobile Communications, Game & Network Services, Imaging Products & Solutions, Home Entertainment & Sound, Semiconductors, Component, Films, Music, Financial Services and All Other. It is engaged in the production, acquisition and distribution of motion pictures and television programming and the operation of television and digital networks. It is also engaged in the development, production, manufacture and distribution of recorded music and the management and licensing of the words and music of songs. It is also engaged in various financial services businesses, including life and non-life insurance operations, through its Japanese insurance subsidiaries and banking operations through a Japanese banking subsidiary.
GoPro Company Profile
GoPro, Inc. (GoPro) produces cameras and mountable and wearable accessories. The Company’s product offerings include HERO5, which is a line of cloud-connected cameras featuring image stabilization, telemetry, cloud connectivity and voice control; GoPro Plus, which is a cloud-based storage solution that enables subscribers to access, edit and share content; Quik, which is a mobile editing application that creates edits on a smartphone; Capture, which is a mobile application that allows users to preview and play back shots, control their GoPro cameras and share content on the fly using their smartphones; Karma, which is its compact and foldable drone and versatile stabilization solution that includes the Karma controller, and camera stabilizer, and it all fits in a custom backpack, and Karma Grip, which is a handheld, body-mountable camera stabilizer. It also offers a full ecosystem of mountable, wearable and voice activated accessories.
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