Analyzing Grocery Outlet (NASDAQ:GO) and Big Tree Cloud (NASDAQ:DSY)

Big Tree Cloud (NASDAQ:DSY) and Grocery Outlet (NASDAQ:GO) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Earnings & Valuation

This table compares Big Tree Cloud and Grocery Outlet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Big Tree Cloud	$2.56 million	7.54	-$32.53 million	N/A	N/A
Grocery Outlet	$4.37 billion	0.23	$39.47 million	($0.05)	-200.80

Grocery Outlet has higher revenue and earnings than Big Tree Cloud.

Analyst Ratings

This is a summary of current recommendations and price targets for Big Tree Cloud and Grocery Outlet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Big Tree Cloud	1	0	0	0	1.00
Grocery Outlet	2	7	4	0	2.15

Grocery Outlet has a consensus target price of $14.32, suggesting a potential upside of 42.61%. Given Grocery Outlet’s stronger consensus rating and higher probable upside, analysts clearly believe Grocery Outlet is more favorable than Big Tree Cloud.

Risk and Volatility

Big Tree Cloud has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Grocery Outlet has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Profitability

This table compares Big Tree Cloud and Grocery Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Big Tree Cloud	N/A	N/A	N/A
Grocery Outlet	-0.10%	5.86%	2.13%

Insider and Institutional Ownership

60.2% of Big Tree Cloud shares are owned by institutional investors. Comparatively, 99.9% of Grocery Outlet shares are owned by institutional investors. 34.1% of Big Tree Cloud shares are owned by insiders. Comparatively, 4.5% of Grocery Outlet shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Grocery Outlet beats Big Tree Cloud on 8 of the 12 factors compared between the two stocks.

About Big Tree Cloud

Big Tree Cloud Holdings Limited manufactures and sells personal care products and other consumer goods. The company is based in Shenzhen, China. Big Tree Cloud Holdings Limited operates as a subsidiary of Ploutos Group Limited.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.