Critical Contrast: Petco Health and Wellness (NASDAQ:WOOF) and Seven and I (OTCMKTS:SVNDY)

Petco Health and Wellness (NASDAQ:WOOF) and Seven and I (OTCMKTS:SVNDY) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares Petco Health and Wellness and Seven and I”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petco Health and Wellness	$6.12 billion	0.18	-$101.82 million	($0.10)	-34.20
Seven and I	$78.57 billion	0.43	$1.14 billion	$0.51	25.55

Seven and I has higher revenue and earnings than Petco Health and Wellness. Petco Health and Wellness is trading at a lower price-to-earnings ratio than Seven and I, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Petco Health and Wellness has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, Seven and I has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Seven and I shares are owned by institutional investors. 4.4% of Petco Health and Wellness shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Petco Health and Wellness and Seven and I’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Petco Health and Wellness	-0.47%	-1.71%	-0.37%
Seven and I	1.65%	6.49%	2.33%

Analyst Recommendations

This is a breakdown of current ratings for Petco Health and Wellness and Seven and I, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petco Health and Wellness	0	7	3	0	2.30
Seven and I	0	0	0	0	0.00

Petco Health and Wellness currently has a consensus target price of $3.95, indicating a potential upside of 15.59%. Given Petco Health and Wellness’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Petco Health and Wellness is more favorable than Seven and I.

Summary

Seven and I beats Petco Health and Wellness on 9 of the 14 factors compared between the two stocks.

About Petco Health and Wellness

Petco Health and Wellness Company, Inc., operates as a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites. The company offers its products under the WholeHearted, Reddy, and Well & Good brands. Petco Health and Wellness Company, Inc. was founded in 1965 and is headquartered in San Diego, California.

About Seven and I

Seven & i Holdings Co., Ltd. operates convenience stores, superstores, department stores, supermarkets, and specialty stores. It operates through six segments: Domestic Convenience Store operations, Overseas Convenience Store Operations, Superstore Operations, Department and Specialty Store Operations, Financial Services, and Others. The company engages in the operation of convenience stores comprising directly managed corporate stores and franchised stores; retail business that provides daily life necessities, such as food and other daily necessities and dollar merchandise and services; banking, leasing, and credit card business; and real estate business. Seven & i Holdings Co., Ltd. was incorporated in 2005 and is headquartered in Tokyo, Japan.