AO World (AO) Competitors

THG (LON:THG) and AO World (LON:AO) are both small-cap consumer cyclical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations, media sentiment and profitability.

Is THG or AO more profitable?

AO World has a net margin of 2.48% compared to THG's net margin of -11.77%. AO World's return on equity of 18.96% beat THG's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
THG	-11.77%	-24.45%	-2.68%
AO World	2.48%	18.96%	5.02%

Which has more volatility and risk, THG or AO?

THG has a beta of 2.4, suggesting that its share price is 140% more volatile than the S&P 500. Comparatively, AO World has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Do institutionals & insiders hold more shares of THG or AO?

31.4% of THG shares are held by institutional investors. Comparatively, 42.1% of AO World shares are held by institutional investors. 31.6% of THG shares are held by company insiders. Comparatively, 47.1% of AO World shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Which has higher earnings & valuation, THG or AO?

AO World has lower revenue, but higher earnings than THG. THG is trading at a lower price-to-earnings ratio than AO World, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
THG	£2.00B	0.22	-£235.23M	-£17.76	-1.87
AO World	£1.03B	0.54	£25.59M	£4.39	22.00

Does the media favor THG or AO?

In the previous week, AO World had 7 more articles in the media than THG. MarketBeat recorded 9 mentions for AO World and 2 mentions for THG. THG's average media sentiment score of 0.41 beat AO World's score of -0.20 indicating that THG is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
THG	0 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
AO World	0 Very Positive mention(s)	2 Positive mention(s)	3 Neutral mention(s)	2 Negative mention(s)	2 Very Negative mention(s)	Neutral

Do analysts prefer THG or AO?

THG currently has a consensus target price of GBX 49, suggesting a potential upside of 47.77%. Given THG's stronger consensus rating and higher probable upside, equities analysts plainly believe THG is more favorable than AO World.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
THG	1 Sell rating(s)	1 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.50
AO World	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00

Summary

AO World beats THG on 10 of the 15 factors compared between the two stocks.