JOANN (NASDAQ:JOANQ) and ODP (NASDAQ:ODP) Head to Head Comparison

JOANN (NASDAQ:JOANQ) and ODP (NASDAQ:ODP) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Volatility and Risk

JOANN has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, ODP has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500.

Insider and Institutional Ownership

72.1% of JOANN shares are held by institutional investors. Comparatively, 99.6% of ODP shares are held by institutional investors. 73.4% of JOANN shares are held by insiders. Comparatively, 3.6% of ODP shares are held by 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.

Profitability

This table compares JOANN and ODP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JOANN	-11.10%	N/A	-4.99%
ODP	1.77%	19.45%	5.60%

Earnings & Valuation

This table compares JOANN and ODP’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JOANN	$2.22 billion	0.00	-$200.60 million	($5.81)	-0.01
ODP	$7.83 billion	0.24	$139.00 million	$3.38	15.20

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

Analyst Ratings

This is a summary of recent recommendations for JOANN and ODP, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JOANN	0	0	0	0	N/A
ODP	0	1	2	0	2.67

ODP has a consensus target price of $62.00, suggesting a potential upside of 20.65%. Given ODP’s higher possible upside, analysts clearly believe ODP is more favorable than JOANN.

Summary

ODP beats JOANN on 12 of the 13 factors compared between the two stocks.

About JOANN

JOANN Inc. operates as a specialty retailer of sewing and fabrics, and arts and crafts category products in the United States. The company products in sewing category include cotton fabrics; warm fabrics, such as fleece and flannel fabrics; home decorating and utility fabrics and accessories; fashion and sportswear fabrics; special occasion fabrics; pillow forms; stuffing, batting, and foams; seasonally themed and licensed fabric designs; and sewing construction supplies comprising cutting implements, threads, zippers, trims, tapes, pins, elastic, and buttons, as well as patterns for sewing projects. Its products in arts and crafts, home décor, and other categories consist of yarn and yarn accessories, and needlecraft kits and supplies; paper crafting components; craft materials; fine art materials; sewing machines, craft technology, lighting, irons, organizers, and other products; artificial floral products; seasonal décor and entertaining products; home décor accessories; ready-made frames; comprehensive assortment books and magazines; and non-merchandise services. The company offers its products through retail stores, as well as online. The company was formerly known as Jo-Ann Stores Holdings Inc. and changed its name to JOANN Inc. in February 2021. JOANN Inc. was founded in 1943 and is based in Hudson, Ohio. On March 18, 2024, JOANN Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

About ODP

The ODP Corporation provides business services and supplies, products, and digital workplace technology solutions for small, medium, and enterprise businesses in the United States, Puerto Rico, and the U.S. Virgin Islands. The company operates through four divisions: ODP Business Solutions, Office Depot, Veyer, and Varis. The ODP Business Solutions division offers adjacency products, including cleaning, janitorial, and breakroom supplies, office furniture, technology products; and copy and print services through sales force, catalogs, telesales, and through Internet websites. This segment also engages in office supply distribution business. The Office Depot division sells office supplies, technology products and solutions, business machines and related supplies, cleaning, breakroom and facilities products, personal protective equipment, and office furniture; and offers business services, including copying, printing, digital imaging, mailing, shipping, and technology support services through a fully integrated omni-channel platform of 980 Office Depot and OfficeMax retail stores, and through www.officedepot.com. The Veyer division engages in supply chain, distribution, procurement, and global sourcing operations. The Varis division operates tech-enabled B2B indirect procurement marketplace, where buyers and suppliers to transact through the platform's consumer-like buying experience, advanced spend management tools, network of suppliers, and technology capabilities. The company offers its products under various brands, including Office Depot, OfficeMax, and Grand&Toy, as well as others. The ODP Corporation was incorporated in 1986 and is headquartered in Boca Raton, Florida.