Reviewing Krispy Kreme (NASDAQ:DNUT) & Lion (OTCMKTS:LIOPF)

Krispy Kreme (NASDAQ:DNUT) and Lion (OTCMKTS:LIOPF) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

This table compares Krispy Kreme and Lion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Krispy Kreme	-29.33%	-5.55%	-1.98%
Lion	5.04%	6.69%	4.40%

Earnings & Valuation

This table compares Krispy Kreme and Lion”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Krispy Kreme	$1.67 billion	0.32	$3.10 million	($2.65)	-1.18
Lion	$2.73 billion	1.13	$139.90 million	$0.51	21.96

Lion has higher revenue and earnings than Krispy Kreme. Krispy Kreme is trading at a lower price-to-earnings ratio than Lion, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Krispy Kreme has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Lion has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.

Institutional and Insider Ownership

81.7% of Krispy Kreme shares are owned by institutional investors. 3.0% of Krispy Kreme shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Krispy Kreme and Lion, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Krispy Kreme	2	4	3	0	2.11
Lion	0	0	0	0	0.00

Krispy Kreme presently has a consensus target price of $6.80, suggesting a potential upside of 117.95%. Given Krispy Kreme’s stronger consensus rating and higher possible upside, analysts clearly believe Krispy Kreme is more favorable than Lion.

Summary

Lion beats Krispy Kreme on 8 of the 14 factors compared between the two stocks.

About Krispy Kreme

Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.

About Lion

Lion Corporation manufactures and sells consumer and industrial products in Japan and internationally. It operates through three segments: Consumer Products Business, Industrial Products Business, and Overseas Business. The company provides dental and oral care products, including toothpastes, toothbrushes, dental floss, dental rinses, mouthwashes, periodontitis ointments, and denture products; body care products, such as shampoos and conditioners, hand soaps, sanitizers, wet wipes, body washes, skin and acne care products, antiperspirants and deodorants, hair-nourishment treatments, men's care and toiletries products, and foot care products. It offers antipyretic analgesics, eye drops and eye care products, cold medicines, gargles, cold relief products, topical anti-inflammatory analgesics, antidiarrheal and gastrointestinal medicines, health tonic drinks and vitamin supplements, acne and anti-drowsiness medicines, and dermatologic agents. In addition, the company offers fabric care products, such as laundry detergent, delicate detergent, prewash treatment, stain remover, bleach, and fabric softener; clothing care products; household cleaners; kitchen cleanup products comprises dishwashing detergents and antibacterial and deodorizing products; and food preparation products. Further, it provides health and beauty food products consisting of supplements and health tonic drinks; specialty chemicals, and chemical products, include rubber processing and additive agents, mandrel release agents, fatty acid methyl esters, plant-based electrical insulating oils, concrete admixtures, surfactants, and cosmetics ingredients, as well as electro-conductive carbon black and pressure-sensitive adhesives; pet supplies; and gift and special-order products. The company was founded in 1891 and is headquartered in Tokyo, Japan.