Analyzing Garmin (NYSE:GRMN) and Koss (NASDAQ:KOSS)

Koss (NASDAQ:KOSS – Get Free Report) and Garmin (NYSE:GRMN – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Insider and Institutional Ownership

6.2% of Koss shares are owned by institutional investors. Comparatively, 81.6% of Garmin shares are owned by institutional investors. 44.1% of Koss shares are owned by company insiders. Comparatively, 14.8% of Garmin shares are owned by company insiders. 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.

Earnings & Valuation

This table compares Koss and Garmin”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Koss $13.02 million 2.36 -$390,000.00 ($0.09) -36.00
Garmin $7.25 billion 7.81 $1.66 billion $10.42 28.17

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

Profitability

This table compares Koss and Garmin’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Koss -7.22% -2.90% -2.39%
Garmin 25.58% 21.94% 17.81%

Volatility & Risk

Koss has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, Garmin has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Koss and Garmin, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Koss 1 0 0 0 1.00
Garmin 1 5 3 1 2.40

Garmin has a consensus target price of $315.29, suggesting a potential upside of 7.40%. Given Garmin’s stronger consensus rating and higher probable upside, analysts clearly believe Garmin is more favorable than Koss.

Summary

Garmin beats Koss on 13 of the 15 factors compared between the two stocks.

About Koss

(Get Free Report)

Koss Corporation (NASDAQ: KOSS) is an American audio equipment company headquartered in Milwaukee, Wisconsin. The company designs, manufactures and sells headphones and related personal audio products for consumers and professional users. Koss’s product portfolio includes wired stereo headphones, wireless and Bluetooth headphones, true wireless earbuds, communication headsets and accessories. Its products are sold through retailers, distributors and online channels under the Koss brand. The company was founded in 1953 by John C. Koss and introduced one of the first high-fidelity stereo headphones, the SP/3, in 1958.

About Garmin

(Get Free Report)

Garmin Ltd. develops, manufactures and markets navigation, communication and information devices and applications. Its products include GPS-enabled watches and fitness trackers, handheld outdoor navigation devices, marine electronics, aviation systems and automotive navigation technology. Founded in 1989 by Gary Burrell and Min Kao, Garmin serves consumers and businesses around the world. Its products are used in activities ranging from fitness and outdoor recreation to boating, aviation and transportation.

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