Head to Head Review: Savers Value Village (NYSE:SVV) versus SEA (NYSE:SE)

Savers Value Village (NYSE:SVV) and SEA (NYSE:SE) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Savers Value Village and SEA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Savers Value Village	0	5	4	0	2.44
SEA	0	4	10	1	2.80

Savers Value Village currently has a consensus price target of $13.29, suggesting a potential upside of 34.14%. SEA has a consensus price target of $133.36, suggesting a potential upside of 80.70%. Given SEA’s stronger consensus rating and higher probable upside, analysts plainly believe SEA is more favorable than Savers Value Village.

Profitability

This table compares Savers Value Village and SEA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Savers Value Village	3.50%	15.51%	3.37%
SEA	5.89%	13.85%	5.82%

Risk & Volatility

Savers Value Village has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, SEA has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.

Insider and Institutional Ownership

98.8% of Savers Value Village shares are held by institutional investors. Comparatively, 59.5% of SEA shares are held by institutional investors. 3.5% of Savers Value Village shares are held by insiders. Comparatively, 0.2% of SEA shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Savers Value Village and SEA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Savers Value Village	$1.68 billion	0.91	$22.64 million	$0.40	24.76
SEA	$22.94 billion	1.97	$1.58 billion	$2.59	28.50

SEA has higher revenue and earnings than Savers Value Village. Savers Value Village is trading at a lower price-to-earnings ratio than SEA, indicating that it is currently the more affordable of the two stocks.

Summary

SEA beats Savers Value Village on 12 of the 15 factors compared between the two stocks.

About Savers Value Village

Savers Value Village Inc. operates a for-profit thrift store business, selling secondhand clothing, accessories, household goods, books and other merchandise. Its stores operate under several banners, including Savers, Value Village, Village des Valeurs, Unique and 2nd Ave. The company sources much of its merchandise through relationships with nonprofit organizations. It purchases donated goods from these partners, then sorts, processes and sells items through its retail stores, helping extend the useful life of donated products while providing revenue to nonprofit partners.

About SEA

Sea Limited is a Singapore-based technology company operating digital entertainment, e-commerce and digital financial services businesses. Founded in 2009 as Garena, the company adopted the name Sea Limited in 2017. Its digital entertainment business, Garena, publishes and develops online games and also provides a platform for users to access games and connect with other players. Shopee, Sea’s e-commerce platform, serves consumers and merchants in Southeast Asia and other markets, including Taiwan and parts of Latin America.