The ODP (NASDAQ:ODP) & JOANN (NASDAQ:JOAN) Critical Contrast

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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The ODP $9.71 billion 0.28 -$319.00 million $3.50 14.00
JOANN $2.76 billion 0.24 $212.30 million $5.93 2.68

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

Insider and Institutional Ownership

85.0% of The ODP shares are owned by institutional investors. 2.0% of The ODP shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for The ODP and JOANN, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The ODP 0 2 0 0 2.00
JOANN 0 0 8 0 3.00

The ODP currently has a consensus target price of $41.50, suggesting a potential downside of 15.32%. JOANN has a consensus target price of $18.43, suggesting a potential upside of 16.12%. Given JOANN’s stronger consensus rating and higher probable upside, analysts clearly believe JOANN is more favorable than The ODP.

Profitability

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

Net Margins Return on Equity Return on Assets
The ODP -3.33% 10.39% 3.36%
JOANN N/A N/A N/A

Summary

JOANN beats The ODP on 7 of the 13 factors compared between the two stocks.

About The ODP

The ODP Corporation provides business services and supplies, products, and digital workplace technology solutions for small, medium, and enterprise businesses. The company operates in three divisions: Business Solutions, Retail, and CompuCom. The Business Solutions division offers office supply products and services, cleaning and breakroom supplies, technology services, copy and print services, and office furniture products and services through sales forces, catalogs, and telesales, as well as through Internet Websites in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada. The Retail division operates a chain of retail stores, which offer office supplies; technology products and solutions; business machines and related supplies; print, cleaning, breakroom, and facilities products; and furniture, as well as printing, copying, mailing, and shipping services. As of February 24, 2021, this division operated 1,154 retail stores in the United States, Puerto Rico, and the U.S. Virgin Islands. The CompuCom division offers technology services supporting the distributed technology needs of enterprise organizations in the United States and Canada. It offers a range of solutions, including technology lifecycle management, end user computing and collaboration, service desk, remote technology monitoring and management, and IT workforce solutions. The company offers its products under various brands, including Office Depot, OfficeMax, CompuCom, and Grand&Toy, as well as others. The ODP Corporation was incorporated in 1986 and is based in Boca Raton, Florida.

About JOANN

JOANN Inc. operates as a specialty retailer of sewing, and arts and crafts category products in the United States. Its 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; seasonally themed and licensed fabric designs; and sewing supplies comprising cutting implements, threads, zippers, trims, tapes, pins, elastic, and buttons, as well as patterns for sewing projects. The company's products in arts and crafts, home décor, and other category 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; related books and magazines; and non-merchandise products. JOANN Inc. offers products through retail stores, as well as online. As of April 1, 2021, it operated 855 retail stores in 49 states. 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.

Receive News & Ratings for The ODP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for The ODP and related companies with MarketBeat.com's FREE daily email newsletter.