Financial Contrast: Canadian Tire (OTCMKTS:CDNAF) vs. zooplus (OTCMKTS:ZLPSF)

zooplus (OTCMKTS:ZLPSF) and Canadian Tire (OTCMKTS:CDNAF) are both consumer cyclical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares zooplus and Canadian Tire”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
zooplus	N/A	N/A	N/A	$0.84	238.10
Canadian Tire	$11.68 billion	0.65	$376.67 million	$3.21	44.51

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

Insider and Institutional Ownership

21.0% of zooplus shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for zooplus and Canadian Tire, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
zooplus	0	0	0	0	0.00
Canadian Tire	0	5	0	0	2.00

Canadian Tire has a consensus target price of $205.00, suggesting a potential upside of 43.47%. Given Canadian Tire’s stronger consensus rating and higher probable upside, analysts plainly believe Canadian Tire is more favorable than zooplus.

Profitability

This table compares zooplus and Canadian Tire’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
zooplus	N/A	N/A	N/A
Canadian Tire	3.24%	9.79%	3.06%

Summary

Canadian Tire beats zooplus on 7 of the 9 factors compared between the two stocks.

About zooplus

zooplus SE operates as an online retailer of pet products. The company offers wet and dry food, feed additives, and snacks for dogs and cats under the Concept for Life, Wolf of Wilderness, Wild Freedom, Purizon, Rocco, Cosma, Lukullus, and Feringa brands, as well as Briantos, My Star, Smilla, and Tigerino brands; and specialty articles, such as toys, scratch trees, transport baskets, grooming and care products, bedding, and other accessories. It provides approximately 8,000 food and accessory products for dogs, cats, small animals, birds, aquarium, and horses. The company sells its products in Germany and internationally. zooplus SE was incorporated in 1999 and is headquartered in Munich, Germany.

About Canadian Tire

Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. It operates in three segments: Retail, CT REIT, and Financial Services. The Retail segment retails automotive maintenance products and accessories, parts, and tires, as well as automotive services and roadside assistance; electrical, hardware, home environment, paint, plumbing, and tool products; cleaning, food & drink, home décor, home essentials, home organization, kitchen, and pet care products; camping, exercise, hockey, hunting, fishing, seasonal recreation, and team sports and golf products; and backyard living, backyard fun, cycling, gardening, outdoor tools, seasonal, and toy products. This segment offers its products under the Canadian Tire, Canadian Tire Gas, Pro Hockey Life, Mark's, PartSource, Helly Hansen, Party City, and SportChek brand names. This segment also participates in loyalty programs, as well as sells its products online. The CT REIT segment operates as a closed-end real estate investment trust that holds a portfolio of properties comprising Canadian Tire stores, Canadian Tire anchored retail developments, industrial properties, mixed-use commercial property, and development properties. The Financial Services segment provides consumer credit cards, in-store financing, insurance products, and retail and broker deposits; and savings accounts and guaranteed investment certificates. Canadian Tire Corporation, Limited was founded in 1922 and is headquartered in Toronto, Canada.