Head to Head Review: Boot Barn (NYSE:BOOT) & ON (NYSE:ONON)

Boot Barn (NYSE:BOOT) and ON (NYSE:ONON) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

This table compares Boot Barn and ON’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boot Barn	10.02%	18.15%	9.82%
ON	7.92%	15.72%	8.99%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Boot Barn and ON, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boot Barn	0	2	12	0	2.86
ON	1	4	15	2	2.82

Boot Barn currently has a consensus target price of $230.83, indicating a potential upside of 35.40%. ON has a consensus target price of $55.05, indicating a potential upside of 42.62%. Given ON’s higher possible upside, analysts clearly believe ON is more favorable than Boot Barn.

Insider & Institutional Ownership

36.4% of ON shares are owned by institutional investors. 0.7% of Boot Barn shares are owned by insiders. Comparatively, 68.6% of ON shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Boot Barn and ON”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boot Barn	$2.25 billion	2.30	$225.88 million	$7.35	23.19
ON	$3.64 billion	6.77	$245.87 million	$0.93	41.51

ON has higher revenue and earnings than Boot Barn. Boot Barn is trading at a lower price-to-earnings ratio than ON, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Boot Barn has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, ON has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500.

Summary

ON beats Boot Barn on 10 of the 15 factors compared between the two stocks.

About Boot Barn

Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing. The company also provides gifts and home merchandise. The company also sells its products through e-commerce websites, including bootbarn.com; sheplers.com; and countryoutfitter.com. The company was formerly known as WW Top Investment Corporation and changed its name to Boot Barn Holdings, Inc. in June 2014. Boot Barn Holdings, Inc. was founded in 1978 and is based in Irvine, California.

About ON

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.