Container Store (The) (NYSE: TCS) and Dover Saddlery (NASDAQ:DOVR) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Container Store (The) and Dover Saddlery, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Container Store (The) 1 3 1 0 2.00
Dover Saddlery 0 1 0 0 2.00

Container Store (The) presently has a consensus price target of $5.38, suggesting a potential upside of 28.59%. Given Container Store (The)’s higher possible upside, equities research analysts plainly believe Container Store (The) is more favorable than Dover Saddlery.

Institutional & Insider Ownership

79.1% of Container Store (The) shares are owned by institutional investors. 65.7% of Container Store (The) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Container Store (The) and Dover Saddlery’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Container Store (The) 1.13% 5.34% 1.49%
Dover Saddlery -3.40% -17.52% -6.75%

Earnings & Valuation

This table compares Container Store (The) and Dover Saddlery’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Container Store (The) $825.55 million 0.24 $70.50 million $0.19 22.00
Dover Saddlery N/A N/A N/A N/A N/A

Container Store (The) has higher revenue and earnings than Dover Saddlery.

Summary

Container Store (The) beats Dover Saddlery on 8 of the 8 factors compared between the two stocks.

About Container Store (The)

The Container Store Group, Inc. is a specialty retailer of storage and organization products. The Company’s segments include The Container Store (TCS), Elfa and Corporate/Other. The Company’s TCS segment consists of its retail stores, Website and call center, as well as its installation and organizational services business. The Company’s Elfa segment includes the manufacturing business that produces the elfa brand products that are sold domestically, exclusively through the TCS segment, as well as throughout Europe. Its Swedish subsidiary, Elfa International AB (Elfa), designs and manufactures component-based shelving and drawer systems and made-to-measure sliding doors. It merchandises over 11,000 products in each of its stores and online. Its stores are organized into various lifestyle departments, which include Bath, Box, Closets, Collections, Containers, Custom Closets, Food Storage, Gift Packaging, Hooks, Kitchen, Laundry, Office, Shelving, Storage, Trash and Travel.

About Dover Saddlery

Dover Saddlery, Inc. is a retailer and omni-channel marketer of equestrian products in the United States. The Company sells its products through omni-channel, including direct and retail. The Company offers a range of products required to own, ride, train and compete with a horse. The Company’s equestrian product line includes a range of separate items such as saddles, tack, specialized apparel, footwear, horse clothing, horse health and stable products. As of December 31, 2013, the Company, through its subsidiaries, operates twenty-one retail stores under the Dover Saddlery brand and one retail store under the Smith Brothers brand. It maintains two catalogs. The Dover Saddlery catalog caters to the mid to high-end, English-style, equestrian products customer. The Smith Brothers catalog is aimed at the Western-style, equestrian products customer. The Company offers web-base marketing through its Websites www.doversaddlery.com and www.smithbrothers.com.

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