Financial Contrast: Weight Watchers International (WTW) and usell.com (USEL)

Weight Watchers International (NYSE: WTW) and usell.com (OTCMKTS:USEL) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Earnings & Valuation

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This table compares Weight Watchers International and usell.com’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weight Watchers International $1.31 billion 2.99 $163.51 million $1.65 36.58
usell.com $94.66 million 0.02 -$3.71 million N/A N/A

Weight Watchers International has higher revenue and earnings than usell.com.

Insider & Institutional Ownership

92.1% of Weight Watchers International shares are held by institutional investors. 15.8% of Weight Watchers International shares are held by company insiders. Comparatively, 21.5% of usell.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Weight Watchers International has a beta of 3.23, meaning that its stock price is 223% more volatile than the S&P 500. Comparatively, usell.com has a beta of 2.06, meaning that its stock price is 106% more volatile than the S&P 500.

Profitability

This table compares Weight Watchers International and usell.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weight Watchers International 12.52% -10.38% 9.01%
usell.com -3.60% -31.84% -14.45%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Weight Watchers International and usell.com, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weight Watchers International 1 0 3 0 2.50
usell.com 0 0 0 0 N/A

Weight Watchers International presently has a consensus target price of $72.00, suggesting a potential upside of 19.28%. Given Weight Watchers International’s higher probable upside, equities research analysts clearly believe Weight Watchers International is more favorable than usell.com.

Summary

Weight Watchers International beats usell.com on 10 of the 11 factors compared between the two stocks.

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.

About usell.com

uSell.com, Inc. operates as a market maker of used smartphones. It acquires products from individual consumers through its uSell.com Website, as well as from various carriers, big box retailers, and manufacturers through its subsidiary, We Sell Cellular. The company sells its devices to professional buyers, such as brick and mortar retailers, online retailers, large and small wholesalers, small repair shops, large refurbishing providers, and insurance companies, as well as directly to consumers through third party e-commerce platforms. The company was formerly known as Upstream Worldwide, Inc. and changed its name to uSell.com, Inc. in July 2012. uSell.com, Inc. was incorporated in 2003 and is headquartered in New York, New York.

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