Critical Analysis: European Wax Center (NASDAQ:EWCZ) & Pitanium (NASDAQ:PTNM)

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

Analyst Ratings

This is a summary of current ratings and price targets for Pitanium and European Wax Center, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pitanium	1	0	0	0	1.00
European Wax Center	2	4	1	0	1.86

European Wax Center has a consensus price target of $6.93, indicating a potential upside of 82.33%. Given European Wax Center’s stronger consensus rating and higher probable upside, analysts plainly believe European Wax Center is more favorable than Pitanium.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pitanium	$75.42 million	3.13	N/A	N/A	N/A
European Wax Center	$216.92 million	0.97	$10.46 million	$0.26	14.62

European Wax Center has higher revenue and earnings than Pitanium.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pitanium	N/A	N/A	N/A
European Wax Center	5.32%	33.41%	4.68%

Insider and Institutional Ownership

82.1% of European Wax Center shares are held by institutional investors. 5.0% of European Wax Center shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

European Wax Center beats Pitanium on 9 of the 10 factors compared between the two stocks.

About Pitanium

Our Operating Subsidiary is a retailer in Hong Kong focusing on the sale of its proprietary brand products, namely PITANIUM and BIG PI online. It also generates revenue from the offline sale at six retail stores situated in Hong Kong’s premier shopping destinations. This positioning not only enhances the brand’s visibility but also aligns it with the discerning tastes of its target demographic. The brand “PITANIUM” was launched in 2019 and began by offering high-end skincare and haircare solutions to spas in Hong Kong. These brand products were later offered for sale to retail customers in our online shop, which allows customers to enjoy the use of professional skincare and personal care products in the comfort of their homes, thereby promoting their health and well-being. The brand “BIG PI” was launched in 2023 and offers whole sets of products to its retail customers using different product formulas. Our Operating Subsidiary emphasizes product design and development with an in-house product development team working closely with its original equipment manufacturing (“OEM”) and original design manufacturing (“ODM”) suppliers. It takes a proactive approach in expanding its product portfolio with a view to staying ahead of market trends and showcasing its ability to cater to the evolving needs of its customers. Our Operating Subsidiary hosts and manages an online shop “www.pitanium.com” to display its best-selling products and latest marketing and promotional initiatives on its home page. Our Operating Subsidiary regularly updates its online shop to keep customers updated about its product offerings. Meanwhile, our Operating Subsidiary is operating six retail stores in Hong Kong. Our principal executive office is located Kowloon, Hong Kong.

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.