Latham Group (NASDAQ:SWIM) versus Shimano (OTCMKTS:SMNNY) Critical Contrast

Shimano (OTCMKTS:SMNNY) and Latham Group (NASDAQ:SWIM) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Profitability

This table compares Shimano and Latham Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shimano	12.18%	5.24%	4.85%
Latham Group	0.92%	1.31%	0.63%

Institutional & Insider Ownership

0.0% of Shimano shares are owned by institutional investors. Comparatively, 84.0% of Latham Group shares are owned by institutional investors. 3.3% of Latham Group 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.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimano	$3.12 billion	3.52	$227.74 million	$0.42	30.24
Latham Group	$545.91 million	1.58	$11.12 million	$0.05	146.20

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

Analyst Ratings

This is a breakdown of current ratings for Shimano and Latham Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimano	0	0	0	0	0.00
Latham Group	3	2	2	0	1.86

Latham Group has a consensus price target of $7.83, indicating a potential upside of 7.16%. Given Latham Group’s stronger consensus rating and higher probable upside, analysts clearly believe Latham Group is more favorable than Shimano.

Risk & Volatility

Shimano has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Latham Group has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500.

About Shimano

Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. It has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. Shimano Inc. was founded in 1921 and is headquartered in Sakai, Japan.

About Latham Group

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.