Head to Head Review: SEA (NYSE:SE) vs. Pattern Group (NASDAQ:PTRN)

SEA (NYSE:SE) and Pattern Group (NASDAQ:PTRN) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Profitability

This table compares SEA and Pattern Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SEA	5.89%	13.85%	5.82%
Pattern Group	3.61%	161.20%	11.46%

Insider and Institutional Ownership

59.5% of SEA shares are held by institutional investors. 0.2% of SEA shares are held by company insiders. Comparatively, 71.0% of Pattern Group 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.

Analyst Ratings

This is a summary of recent ratings for SEA and Pattern Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEA	0	4	11	1	2.81
Pattern Group	1	0	9	0	2.80

SEA currently has a consensus target price of $135.17, indicating a potential upside of 82.55%. Pattern Group has a consensus target price of $27.56, indicating a potential upside of 28.91%. Given SEA’s stronger consensus rating and higher probable upside, analysts clearly believe SEA is more favorable than Pattern Group.

Risk and Volatility

SEA has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, Pattern Group has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.

Earnings & Valuation

This table compares SEA and Pattern Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SEA	$22.94 billion	1.97	$1.58 billion	$2.59	28.59
Pattern Group	$2.50 billion	1.32	$16.25 million	$0.65	32.89

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

Summary

SEA beats Pattern Group on 11 of the 15 factors compared between the two stocks.

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.

About Pattern Group

Pattern Group is an e-commerce technology and services company that helps brands sell and grow on online marketplaces. Its platform combines software, data analytics and operational support to help clients manage their digital commerce business. Services include marketplace advertising, product catalog and content management, pricing and sales analysis, inventory planning, and fulfillment support. Pattern works with brands across major online marketplaces, helping them reach customers in multiple countries.