Head to Head Survey: Swatch Group (OTCMKTS:SWGAY) & Nestle (OTCMKTS:NSRGY)

Nestle (OTCMKTS:NSRGY) and Swatch Group (OTCMKTS:SWGAY) are both large-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Volatility & Risk

Nestle has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Swatch Group has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Profitability

This table compares Nestle and Swatch Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nestle	N/A	N/A	N/A
Swatch Group	N/A	N/A	N/A

Insider and Institutional Ownership

0.6% of Nestle shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Nestle pays an annual dividend of $2.37 per share and has a dividend yield of 2.4%. Swatch Group pays an annual dividend of $0.12 per share and has a dividend yield of 1.2%.

Earnings & Valuation

This table compares Nestle and Swatch Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nestle	$103.78 billion	2.42	$12.36 billion	N/A	N/A
Swatch Group	$7.65 billion	3.17	$219.23 million	N/A	N/A

Nestle has higher revenue and earnings than Swatch Group.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nestle	1	3	1	1	2.33
Swatch Group	1	0	0	0	1.00

Nestle currently has a consensus price target of $91.00, indicating a potential downside of 6.84%. Given Nestle’s stronger consensus rating and higher probable upside, research analysts clearly believe Nestle is more favorable than Swatch Group.

Summary

Nestle beats Swatch Group on 8 of the 10 factors compared between the two stocks.

About Nestle

Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone North America; Zone Europe; Zone Asia, Oceania, and Africa; Zone Latin America; Zone Greater China; Nespresso; and Nestlé Health Science segments. It offers baby foods under the Cerelac, Gerber, Nido, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, Vittel, Buxton, Erikli, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Smarties, Aero, Nestlé Les Recettes de l'Atelier, Milkybar, Baci Perugina, Quality Street, and Fitness brands. The company provides coffee products under the Nescafé, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, and Blue Bottle Coffee brands; culinary, chilled, and frozen foods under the Maggi, DiGiorno, Thomy, Garden Gourmet, Sweet Earth, Hot Pockets, Stouffer's, Buitoni, Lean, and Life Cuisine brands; dairy products under the Carnation, Nido, Bear, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, Nescafé, and Milo brands. In addition, it offers food service products under the Milo, Nescafé, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Minor's, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Garden of Life, Nature's Bounty, Persona, Vital Proteins, Solgar, Peptamen, Resource, Vitaflo, Impact, and Compleat brands; ice cream products under the Movenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland.

About Swatch Group

The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials, watch hands, bracelets, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.