Rover Group (NASDAQ:ROVR – Get Rating) and European Wax Center (NASDAQ:EWCZ – Get Rating) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.
This table compares Rover Group and European Wax Center’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|European Wax Center||3.31%||9.60%||5.30%|
This table compares Rover Group and European Wax Center’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rover Group||$109.84 million||7.70||-$64.05 million||($1.22)||-3.84|
|European Wax Center||$178.68 million||7.42||-$3.41 million||$0.12||174.08|
European Wax Center has higher revenue and earnings than Rover Group. Rover Group is trading at a lower price-to-earnings ratio than European Wax Center, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for Rover Group and European Wax Center, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|European Wax Center||0||2||6||0||2.75|
Rover Group currently has a consensus target price of $10.17, indicating a potential upside of 116.77%. European Wax Center has a consensus target price of $31.29, indicating a potential upside of 49.76%. Given Rover Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Rover Group is more favorable than European Wax Center.
Institutional & Insider Ownership
78.8% of Rover Group shares are owned by institutional investors. Comparatively, 69.4% of European Wax Center shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
European Wax Center beats Rover Group on 8 of the 12 factors compared between the two stocks.
Rover Group Company Profile (Get Rating)
Rover Group, Inc. operates an online marketplace for pet care worldwide. It connects pet parents with pet providers who offer overnight services, including boarding and in-home pet sitting, as well as daytime services, such as doggy daycare, dog walking, drop-in visits, grooming, and training. The company is headquartered in Seattle, Washington.
European Wax Center Company Profile (Get Rating)
European Wax Center, Inc. operates as a holding company for EWC Ventures, LLC that franchises and operates out-of-home waxing services in the United States. The company sells facial and body waxing products to franchisees. It offers Brazilian, body, brow, facial hair, and fast waxing services, as well as services related to men; and laser hair removal, sugaring, and threading services, as well as in-home solutions, such as shaving, chemical-based creams, epilators, at-home laser hair removal, and at-home waxing. The company also provides pre- and post-service products, including ingrown hair serums, exfoliating gels, brow shapers, and skin treatments, as well as distributes retail products to its franchisees for sale in-centers and sells direct-to-consumer through website. As of December 25, 2021, it had a portfolio of centers operating in 853 locations, including 848 are franchised centers and five corporate-owned centers. European Wax Center, Inc. was founded in 2004 and is headquartered in Plano, Texas.
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