EACO (OTCMKTS:EACO) vs. Offerpad Solutions (NYSE:OPAD) Critical Survey

EACO (OTCMKTS:EACO) and Offerpad Solutions (NYSE:OPAD) are both small-cap energy companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Profitability

This table compares EACO and Offerpad Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EACO	7.39%	22.09%	14.75%
Offerpad Solutions	-8.08%	-132.77%	-19.03%

Institutional and Insider Ownership

39.4% of Offerpad Solutions shares are held by institutional investors. 97.9% of EACO shares are held by insiders. Comparatively, 40.6% of Offerpad Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

EACO has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500. Comparatively, Offerpad Solutions has a beta of 2.34, meaning that its stock price is 134% more volatile than the S&P 500.

Valuation and Earnings

This table compares EACO and Offerpad Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EACO	$356.23 million	1.08	$14.95 million	$6.07	13.01
Offerpad Solutions	$918.82 million	0.13	-$62.16 million	($2.06)	-1.95

EACO has higher earnings, but lower revenue than Offerpad Solutions. Offerpad Solutions is trading at a lower price-to-earnings ratio than EACO, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for EACO and Offerpad Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EACO	0	0	0	0	0.00
Offerpad Solutions	1	6	0	0	1.86

Offerpad Solutions has a consensus price target of $2.41, indicating a potential downside of 39.85%. Given Offerpad Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe Offerpad Solutions is more favorable than EACO.

Summary

EACO beats Offerpad Solutions on 8 of the 13 factors compared between the two stocks.

About EACO

EACO Corporation, through its subsidiary, Bisco Industries, Inc., distributes and sells electronic components and fasteners in the United States, Asia, Canada, and internationally. It offers electronic components, such as spacers and standoffs, card guides and ejectors, component holders and fuses, circuit board connectors, and cable components, as well as various fasteners and hardware products. The company also provides customized services and solutions for various production needs, including special packaging, bin stocking, kitting and assembly, bar coding, electronic requisitioning, integrated supply programs, and others. It supplies parts used in the manufacture of products to a range of industries, including aerospace, circuit board, communication, computer, fabrication, instrumentation, industrial equipment, and marine. The company sells its products primarily to the original equipment manufacturers through its sales representatives and distribution centers. EACO Corporation was founded in 1973 and is headquartered in Anaheim, California.

About Offerpad Solutions

Offerpad Solutions Inc., together with its subsidiaries, provides technology-enabled solutions for residential real estate market in the United States. It operates iBuying, a real estate solutions platform for on-demand customer that provides home buyers the opportunity to browse and tour homes online. It buys and sells homes through cash offer and listing services. In addition, the company offers renovation services; and ancillary products and services, including mortgage, title insurance, and escrow services, as well as Offerpad Bundle Rewards program that allows customers to receive various discounts when selling and buying a home. Offerpad Solutions Inc. was founded in 2015 and is headquartered in Chandler, Arizona.