Contrasting Luxottica Group (LUXTY) & The Cooper Companies (COO)

Luxottica Group (OTCMKTS: LUXTY) and The Cooper Companies (NYSE:COO) are both large-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Earnings & Valuation

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This table compares Luxottica Group and The Cooper Companies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Luxottica Group $10.35 billion 2.98 $1.17 billion $2.00 32.29
The Cooper Companies $2.14 billion 5.08 $372.90 million $9.70 22.86

Luxottica Group has higher revenue and earnings than The Cooper Companies. The Cooper Companies is trading at a lower price-to-earnings ratio than Luxottica Group, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Luxottica Group has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, The Cooper Companies has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Institutional and Insider Ownership

0.5% of Luxottica Group shares are owned by institutional investors. Comparatively, 98.5% of The Cooper Companies shares are owned by institutional investors. 75.0% of Luxottica Group shares are owned by company insiders. Comparatively, 1.6% of The Cooper Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Luxottica Group and The Cooper Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Luxottica Group N/A N/A N/A
The Cooper Companies 7.83% 16.90% 10.11%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Luxottica Group and The Cooper Companies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Luxottica Group 2 0 1 0 1.67
The Cooper Companies 0 7 6 0 2.46

The Cooper Companies has a consensus price target of $264.90, suggesting a potential upside of 19.47%. Given The Cooper Companies’ stronger consensus rating and higher probable upside, analysts clearly believe The Cooper Companies is more favorable than Luxottica Group.

Dividends

Luxottica Group pays an annual dividend of $0.76 per share and has a dividend yield of 1.2%. The Cooper Companies pays an annual dividend of $0.06 per share and has a dividend yield of 0.0%. Luxottica Group pays out 38.0% of its earnings in the form of a dividend. The Cooper Companies pays out 0.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

The Cooper Companies beats Luxottica Group on 11 of the 16 factors compared between the two stocks.

About Luxottica Group

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.

About The Cooper Companies

The Cooper Companies, Inc. operates as a medical device company worldwide. It operates through CooperVision and CooperSurgical business units. The company develops, manufactures, and markets a range of contact lenses, including spherical lenses, and toric and multifocal lenses that correct near- and farsightedness, as well as addresses various complex visual defects, such as astigmatism and presbyopia. It also provides range of products and services focusing on women's health, including medical devices, fertility, genomics, and diagnostics and contraception for hospitals and surgical centers, obstetricians' and gynecologists' (ob/gyns) medical offices, and fertility clinics. In addition, the company offers carrier screening, preimplantation genetic screening, and preimplantation genetic diagnosis used in IVF process; IVF medical devices, systems, and equipment; and PARAGARD, a non-hormonal, copper intrauterine device for birth control. Further, The Cooper Companies, Inc. offers its products under Biofinity, clarity 1day, MyDay, and Proclear 1 Day brand name. The company markets its products through a network of field sales representatives, independent agents, and distributors. The Cooper Companies, Inc. was founded in 1980 and is headquartered in Pleasanton, California.

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