Analyzing Owlet (NYSE:OWLT) & Edenred (OTCMKTS:EDNMY)

Edenred (OTCMKTS:EDNMY) and Owlet (NYSE:OWLT) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Analyst Recommendations

This is a summary of current recommendations for Edenred and Owlet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Edenred	0	5	1	1	2.43
Owlet	1	1	3	0	2.40

Owlet has a consensus price target of $15.00, indicating a potential upside of 173.42%. Given Owlet’s higher possible upside, analysts clearly believe Owlet is more favorable than Edenred.

Insider & Institutional Ownership

72.6% of Owlet shares are held by institutional investors. 36.2% of Owlet shares are held 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.

Risk & Volatility

Edenred has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Owlet has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.

Profitability

This table compares Edenred and Owlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Edenred	N/A	N/A	N/A
Owlet	-42.54%	N/A	-18.02%

Valuation and Earnings

This table compares Edenred and Owlet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Edenred	$3.35 billion	1.92	$589.46 million	N/A	N/A
Owlet	$105.70 million	1.51	-$39.68 million	($3.07)	-1.79

Edenred has higher revenue and earnings than Owlet.

Summary

Edenred beats Owlet on 7 of the 12 factors compared between the two stocks.

About Edenred

Edenred SE provides digital platform for services and payments for companies, employees, and merchants worldwide. It offers employee benefit solutions, including Ticket Restaurant, a solution that allows employees to take time out for lunch at a partner merchant; Ticket Alimentación that allows users to pay for groceries in neighborhood stores and supermarkets; Ticket Regalo, a gift voucher; Ticket CESU, a human services solution; Ticket Plus Card, a solution that enables the purchase of staples, such as food and fuel; Ticket Welfare, which employees can use to pay for a range of services, such as access to sports facilities and solutions for their children’s educational needs; Ticket Guardería for companies without on-site daycare facilities; Childcare Vouchers; Ticket EcoCheque, a solutions that encourages purchase of environmentally friendly products; Ticket Kadeos Culture and Ticket Cultura that are solutions for cultural goods and services. The company also offers mobility solutions comprising Ticket Log for light vehicle fleet management; Ticket Fleet Pro and Ticket Cargo for truck fleet management; Ticket Car for employees to pay for fuel and other business travel expenses; UTA Edenred for paying tolls, optimize routes, pay for roadside assistance and truck servicing, and for VAT reimbursement; fuel cards; and refund services for VAT and excise duties. In addition, it provides complementary solutions comprising corporate payment, invoice processing automation, and salary card solutions. Edenred SE was founded in 1962 and is headquartered in Issy-les-Moulineaux, France.

About Owlet

Owlet, Inc. provides digital parenting solutions in the United States and internationally. The company's platform focuses on giving real-time data and insights to parents. It offers Dream Sock, a wearable infant health monitor equipped with pulse oximetry technology to track vitals signs, such as pulse rate, oxygen, activity, and sleep patterns; BabySat which is intended for infants with heightened health risk; Owlet Cam, a monitoring device in smartphones that offers video and audio, predictive sleep insights, and cry detections; and accessories, including Owlet Sleeper, as well as Duo and Dream Duo that combines Smart Sock with the Owlet Cam. The company was founded in 2012 and is headquartered in Lehi, Utah.