WW International (NASDAQ:WW – Get Free Report) and Frontdoor (NASDAQ:FTDR – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.
Profitability
This table compares WW International and Frontdoor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WW International | -56.84% | N/A | -0.32% |
| Frontdoor | 12.72% | 120.90% | 14.86% |
Earnings & Valuation
This table compares WW International and Frontdoor”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WW International | $710.64 million | 0.21 | -$112.25 million | ($10.13) | -1.50 |
| Frontdoor | $2.09 billion | 2.64 | $255.00 million | $3.77 | 21.25 |
Frontdoor has higher revenue and earnings than WW International. WW International is trading at a lower price-to-earnings ratio than Frontdoor, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
86.2% of WW International shares are owned by institutional investors. 0.4% of WW International shares are owned by company insiders. Comparatively, 1.6% of Frontdoor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and price targets for WW International and Frontdoor, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WW International | 1 | 1 | 0 | 0 | 1.50 |
| Frontdoor | 0 | 3 | 5 | 0 | 2.62 |
Frontdoor has a consensus target price of $92.60, indicating a potential upside of 15.61%. Given Frontdoor’s stronger consensus rating and higher probable upside, analysts plainly believe Frontdoor is more favorable than WW International.
Volatility & Risk
WW International has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Frontdoor has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.
Summary
Frontdoor beats WW International on 12 of the 14 factors compared between the two stocks.
About WW International
WW International, Inc. provides weight management products and services worldwide. It offers a range of nutritional, activity, behavioral, and lifestyle tools and approaches products and services. The company also provides various digital subscription products to wellness and weight management business, which provide interactive and personalized resources that allow users to follow its weight management program through its app and web-based platform; and allows members to inspire and support each other by sharing their experiences with other people on weight health journeys. In addition, it licenses its trademarks and other intellectual property in food, beverages, and other relevant consumer products and services, as well as provides publishing services. The company was formerly known as Weight Watchers International, Inc. and changed its name to WW International, Inc. in September 2019. WW International, Inc. was founded in 1961 and is headquartered in New York, New York.
About Frontdoor
Frontdoor, Inc. provides home warranties in the United States in the United States. Its customizable home warranties help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. The company’s home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of approximately 20 home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and heating, ventilation, and air conditioning systems. It also offers on-demand home services and a one-stop app experience for home repair and maintenance; and Streem technology, an app that empowers homeowners by connecting them in real time through video chat with qualified experts to diagnose and solve their problems. The company serves homeowners under the Frontdoor, American Home Shield, HSA, OneGuard, Landmark Home Warranty, Frontdoor logo, and Streem brands. The company was founded in 1971 and is headquartered in Memphis, Tennessee.
Receive News & Ratings for WW International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for WW International and related companies with MarketBeat.com's FREE daily email newsletter.
