Contrasting National Vision (EYE) and Luxottica Group (LUXTY)

National Vision (NASDAQ: EYE) and Luxottica Group (OTCMKTS:LUXTY) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Dividends

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Luxottica Group pays an annual dividend of $0.76 per share and has a dividend yield of 1.2%. National Vision does not pay a dividend. Luxottica Group pays out 38.0% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares National Vision and Luxottica Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Vision $1.38 billion 1.75 $45.82 million $0.53 60.75
Luxottica Group $9.89 billion 3.00 $941.18 million $2.00 31.03

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for National Vision and Luxottica Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Vision 0 2 5 0 2.71
Luxottica Group 2 0 1 0 1.67

National Vision currently has a consensus target price of $36.40, indicating a potential upside of 13.04%. Given National Vision’s stronger consensus rating and higher probable upside, research analysts clearly believe National Vision is more favorable than Luxottica Group.

Institutional and Insider Ownership

97.4% of National Vision shares are owned by institutional investors. Comparatively, 0.5% of Luxottica Group shares are owned by institutional investors. 75.0% of Luxottica Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares National Vision and Luxottica Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Vision N/A N/A N/A
Luxottica Group N/A N/A N/A

Summary

Luxottica Group beats National Vision on 6 of the 11 factors compared between the two stocks.

About National Vision

National Vision Holdings, Inc. is an optical retail company. The Company is focused on offering a variety of products and services for customers’ eye care needs. The Company’s segments include owned & host segment and legacy segment. The owned & host segment includes two owned brands, America’s Best and Eyeglass World, and Vista Optical locations in Fred Meyer stores. The legacy segment includes Walmart to operate Vision Centers in select Walmart stores. In addition, the Company’s wholly-owned subsidiary, FirstSight, arranges for the provision of optometric services at almost all of the optometric offices next to Walmart and Sam’s Club stores in California. The Company supports owned brands and Vista Optical military operations through ever evolving omni-channel offerings and also has an established standalone e-commerce business. The e-commerce platform serves e-commerce Websites and the e-commerce Websites of third parties.

About Luxottica Group

Luxottica Group S.p.A., together with its subsidiaries, provides fashion, luxury, sports, and performance eyewear worldwide. It operates through two segments, Manufacturing and Wholesale Distribution, and Retail Distribution. The Manufacturing and Wholesale Distribution segment engages in the design, manufacture, wholesale distribution, and marketing of proprietary and designer lines of prescription frames and sunglasses, as well as performance optics products. This segment offers its products under proprietary brands, such as Ray-Ban, Oakley, Vogue Eyewear, Persol, Oliver Peoples, Alain Mikli, and Arnette; and licensed brands, including Giorgio Armani, Emporio Armani, Armani Exchange, Brooks Brothers, Burberry, Bulgari, Chanel, Coach, Dolce&Gabbana, DKNY, Michael Kors, Paul Smith Spectacles, Prada, Miu Miu, Ralph Lauren, Polo Ralph Lauren, Ralph, Starck Eyes, Tiffany & Co, Tory Burch, Valentino, Versace, and Ferrari. The Retail Distribution segment operates prescription eyewear stores primarily under its retail brands, including LensCrafters, Sunglass Hut, Pearle Vision, OPSM, Laubman & Pank, GMO, David Clulow, Salmoiraghi & Viganò, Ray-Ban, Oakley, Oliver Peoples and Alain Mikli stores, The Optical Shop of Aspen, and ILORI; and licensed brands, such as Sears Optical and Target Optical. As of May 16, 2017, it owned, operated, and franchised a network of approximately 8,000 stores. The company was founded in 1961 and is headquartered in Milan, Italy. Luxottica Group S.p.A. is a subsidiary of Delfin S.à r.l.

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