Head to Head Contrast: European Wax Center (NASDAQ:EWCZ) vs. CCA Industries (OTCMKTS:CAWW)

European Wax Center (NASDAQ:EWCZ) and CCA Industries (OTCMKTS:CAWW) are both small-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Institutional & Insider Ownership

82.1% of European Wax Center shares are owned by institutional investors. 5.0% of European Wax Center shares are owned by insiders. Comparatively, 30.1% of CCA Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

European Wax Center has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, CCA Industries has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.

Valuation & Earnings

This table compares European Wax Center and CCA Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
European Wax Center	$216.92 million	1.44	$10.46 million	$0.20	28.35
CCA Industries	$7.74 million	0.79	-$6.12 million	($0.77)	-1.21

European Wax Center has higher revenue and earnings than CCA Industries. CCA Industries 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for European Wax Center and CCA Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
European Wax Center	1	4	2	0	2.14
CCA Industries	0	0	0	0	0.00

European Wax Center presently has a consensus target price of $7.00, suggesting a potential upside of 23.46%. Given European Wax Center’s stronger consensus rating and higher possible upside, analysts plainly believe European Wax Center is more favorable than CCA Industries.

Profitability

This table compares European Wax Center and CCA Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
European Wax Center	4.38%	23.65%	3.35%
CCA Industries	-80.62%	-96.03%	-71.60%

Summary

European Wax Center beats CCA Industries on 13 of the 14 factors compared between the two stocks.

About European Wax Center

European Wax Center, Inc. operates as the franchisor and operator of out-of-home waxing services in the United States. It offers body and facial waxing services; and pre- and post-service products, including ingrown hair serums, exfoliating gels, brow shapers, and skin treatments. The company was founded in 2004 and is headquartered in Plano, Texas.

About CCA Industries

CCA Industries, Inc. manufactures and distributes health and beauty aid products in the United States and internationally. It offers oral health-care products under the Plus+White brand; skin-care products under the Sudden Change and Porcelana brand names; nail treatments under the brand name of Nutra Nail; medicated topical and shave gels under the Bikini Zone brand; depilatories under the Hair Off brand and; perfumes under the brand name of Sunset Cafe. The company markets its products to drug, food, and mass-merchandise retail chains; warehouse clubs; and wholesale beauty-aids through independent sales representatives and distributors, as well as through Internet. CCA Industries, Inc. was incorporated in 1983 and is based in Lyndhurst, New Jersey.