Head to Head Comparison: The Cooper Companies (COO) & Luxottica Group (LUXTY)

The Cooper Companies (NYSE: COO) and Luxottica Group (OTCMKTS:LUXTY) are both large-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Dividends

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The Cooper Companies pays an annual dividend of $0.06 per share and has a dividend yield of 0.0%. Luxottica Group pays an annual dividend of $0.76 per share and has a dividend yield of 1.2%. The Cooper Companies pays out 0.6% of its earnings in the form of a dividend. Luxottica Group pays out 38.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility and Risk

The Cooper Companies has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Luxottica Group has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Valuation and Earnings

This table compares The Cooper Companies and Luxottica Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Cooper Companies $2.14 billion 5.21 $372.90 million $9.70 23.42
Luxottica Group $10.35 billion 3.04 $1.17 billion $2.00 32.40

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

Profitability

This table compares The Cooper Companies and Luxottica Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Cooper Companies 7.83% 16.90% 10.11%
Luxottica Group N/A N/A N/A

Institutional and Insider Ownership

98.5% of The Cooper Companies shares are held by institutional investors. Comparatively, 0.5% of Luxottica Group shares are held by institutional investors. 1.6% of The Cooper Companies shares are held by company insiders. Comparatively, 75.0% of Luxottica Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for The Cooper Companies and Luxottica Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Cooper Companies 0 7 6 0 2.46
Luxottica Group 2 0 1 0 1.67

The Cooper Companies currently has a consensus price target of $264.90, indicating a potential upside of 16.60%. Given The Cooper Companies’ stronger consensus rating and higher probable upside, research analysts clearly believe The Cooper Companies is more favorable than Luxottica Group.

Summary

The Cooper Companies beats Luxottica Group on 11 of the 16 factors compared between the two stocks.

The Cooper Companies Company Profile

The Cooper Companies, Inc. operates as a medical device company worldwide. It operates through CooperVision and CooperSurgical business units. The company develops, manufactures, and markets a range of contact lenses, including spherical lenses, and toric and multifocal lenses that correct near- and farsightedness, as well as addresses various complex visual defects, such as astigmatism and presbyopia. It also provides range of products and services focusing on women's health, including medical devices, fertility, genomics, and diagnostics and contraception for hospitals and surgical centers, obstetricians' and gynecologists' (ob/gyns) medical offices, and fertility clinics. In addition, the company offers carrier screening, preimplantation genetic screening, and preimplantation genetic diagnosis used in IVF process; IVF medical devices, systems, and equipment; and PARAGARD, a non-hormonal, copper intrauterine device for birth control. Further, The Cooper Companies, Inc. offers its products under Biofinity, clarity 1day, MyDay, and Proclear 1 Day brand name. The company markets its products through a network of field sales representatives, independent agents, and distributors. The Cooper Companies, Inc. was founded in 1980 and is headquartered in Pleasanton, California.

Luxottica Group Company Profile

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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