Best Buy (NYSE:BBY – Get Free Report) and Harvey Norman (OTCMKTS:HNORY – Get Free Report) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Institutional and Insider Ownership
76.1% of Best Buy shares are owned by institutional investors. 0.6% of Best Buy shares are owned by 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.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Best Buy and Harvey Norman, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Best Buy | 1 | 3 | 11 | 0 | 2.67 |
| Harvey Norman | 1 | 1 | 0 | 0 | 1.50 |
Earnings & Valuation
This table compares Best Buy and Harvey Norman’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Best Buy | $46.30 billion | 0.33 | $1.42 billion | $5.81 | 11.96 |
| Harvey Norman | N/A | N/A | N/A | $0.98 | 12.21 |
Best Buy has higher revenue and earnings than Harvey Norman. Best Buy is trading at a lower price-to-earnings ratio than Harvey Norman, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Best Buy and Harvey Norman’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Best Buy | 2.91% | 49.40% | 8.98% |
| Harvey Norman | N/A | N/A | N/A |
Summary
Best Buy beats Harvey Norman on 10 of the 11 factors compared between the two stocks.
About Best Buy
Best Buy Co., Inc. engages in the retail of technology products in the United States and Canada. The company operates in two segments, Domestic and International. Its stores provide computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, home theater, portable audio comprising headphones and portable speakers, and smart home products. The company's stores also offer appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, and vacuums; entertainment products consisting of drones, peripherals, movies, music, and toys, as well as gaming hardware and software, and virtual reality and other software products; and other products, such as baby, food and beverage, luggage, outdoor living, and sporting goods. In addition, it provides consultation, delivery, design, installation, memberships, repair, set-up, technical support, health-related, and warranty-related services. The company offers its products through stores and websites under the Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, Buy Mobile, CST, Current Health, Geek Squad, Lively, Magnolia, Pacific Kitchen, Home, TechLiquidators, and Yardbird brands, as well as domain names comprising bestbuy.com, currenthealth.com, lively.com, techliquidators.com, yardbird.com, and bestbuy.ca. The company was formerly known as Sound of Music, Inc. Best Buy Co., Inc. was incorporated in 1966 and is headquartered in Richfield, Minnesota.
About Harvey Norman
Harvey Norman Holdings Limited engages in the integrated retail, franchise, property, and digital system businesses. It franchises and sells products in various categories, including electrical goods, furniture, computerized communications, bedding and Manchester, kitchen and small appliances, bathroom and tiles, and carpets and floorings. It operates complexes under the Harvey Norman, Domayne, and Joyce Mayne brands in Australia; and company-operated stores under the Harvey Norman brand in New Zealand, Singapore, Malaysia, Slovenia, Croatia, Ireland, and Northern Ireland. It is also involved in the property investment and media placement activities; acts as a lessor of premises to Harvey Norman, Domayne, and Joyce Mayne franchisees and other third parties, as well as retail properties; development and sale of properties; and provision of consumer finance and other commercial loans and advances. The company was founded in 1982 and is based in Homebush West, Australia.
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