Financial Analysis: Best Buy (NYSE:BBY) & Raytech (NASDAQ:RAY)

Best Buy (NYSE:BBY) and Raytech (NASDAQ:RAY) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Institutional and Insider Ownership

81.0% of Best Buy shares are held by institutional investors. 0.6% of Best Buy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Best Buy and Raytech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Best Buy	1	11	8	0	2.35
Raytech	0	0	0	0	0.00

Best Buy currently has a consensus target price of $85.7222, indicating a potential upside of 19.33%. Given Best Buy’s stronger consensus rating and higher possible upside, analysts clearly believe Best Buy is more favorable than Raytech.

Profitability

This table compares Best Buy and Raytech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Best Buy	2.13%	46.40%	8.86%
Raytech	N/A	N/A	N/A

Earnings and Valuation

This table compares Best Buy and Raytech”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Best Buy	$41.53 billion	0.37	$927.00 million	$4.09	17.56
Raytech	$10.12 million	12.71	$1.06 million	N/A	N/A

Best Buy has higher revenue and earnings than Raytech.

Risk & Volatility

Best Buy has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Raytech has a beta of -4.19, meaning that its share price is 519% less volatile than the S&P 500.

Summary

Best Buy beats Raytech on 11 of the 12 factors compared between the two stocks.

About Best Buy

Best Buy Co., Inc. engages in the retail of technology products in the United States, Canada, 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, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions. The company's stores also offer appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, vacuums, and personal care; entertainment products consisting of drones, peripherals, movies, and toys, as well as 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 delivery, 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 Raytech

Raytech Holding Limited company specializes in design, sourcing and wholesale of personal care electrical appliances for international brand owners. Raytech Holding Limited is based in Hong Kong.