Contrasting SEA (NYSE:SE) & Online Vacation Center (OTCMKTS:ONVC)

Online Vacation Center (OTCMKTS:ONVC) and SEA (NYSE:SE) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Valuation and Earnings

This table compares Online Vacation Center and SEA”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Online Vacation Center	$19.46 million	0.60	$490,000.00	$0.05	33.75
SEA	$22.94 billion	3.00	$1.58 billion	$2.59	43.47

SEA has higher revenue and earnings than Online Vacation Center. Online Vacation Center is trading at a lower price-to-earnings ratio than SEA, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Online Vacation Center has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, SEA has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Online Vacation Center and SEA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Online Vacation Center	0	0	0	0	0.00
SEA	1	2	8	1	2.75

SEA has a consensus target price of $149.11, indicating a potential upside of 32.44%. Given SEA’s stronger consensus rating and higher possible upside, analysts plainly believe SEA is more favorable than Online Vacation Center.

Profitability

This table compares Online Vacation Center and SEA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Online Vacation Center	1.64%	N/A	N/A
SEA	5.98%	13.54%	5.59%

Institutional & Insider Ownership

59.5% of SEA shares are owned by institutional investors. 71.3% of Online Vacation Center shares are owned by insiders. Comparatively, 0.2% of SEA 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.

Summary

SEA beats Online Vacation Center on 13 of the 15 factors compared between the two stocks.

About Online Vacation Center

Online Vacation Center Holdings Corp., through its subsidiaries, provides vacation travel and marketing services in the United States. The company offers vacation services for affluent retiree markets. It also involved in developing and selling river, ocean, and land vacation packages; publishes three travel newsletters under the Top Travel Deals, Spotlight, and TravelFlash brands; selling online of golf training aids; and operates a cruises franchise that focused on travel sales through mobile agents, as well as a website that connects travelers to purchase hotel, resort, and vacation packages. The company was founded in 1972 and is based in Fort Lauderdale, Florida.

About SEA

Sea Ltd. is an internet and mobile platform company, which engages in the provision of online gaming services. It operates through the following segments: Digital Entertainment, E-Commerce, and Digital Financial Services. The Digital Entertainment segment offers and develops mobile and PC online games. The E-Commerce segment manages a third-party marketplace through the Shopee mobile app and websites that connect buyers and sellers. The Digital Financial Services segment includes a variety of payment services and loans to individuals and businesses through SeaMoney. Sea was founded by Xiao Dong Li, Gang Ye, and Jing Ye Chen on May 8, 2009 and is headquartered in Singapore.