PetMed Express (NASDAQ:PETS – Get Free Report) and Auto Trader Group (OTCMKTS:ATDRY – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.
Profitability
This table compares PetMed Express and Auto Trader Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PetMed Express | -32.00% | -76.86% | -31.67% |
| Auto Trader Group | N/A | N/A | N/A |
Institutional and Insider Ownership
73.3% of PetMed Express shares are owned by institutional investors. Comparatively, 0.0% of Auto Trader Group shares are owned by institutional investors. 2.0% of PetMed Express 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.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PetMed Express | $179.02 million | 0.21 | -$57.29 million | ($2.75) | -0.64 |
| Auto Trader Group | $836.74 million | 5.92 | $393.91 million | N/A | N/A |
Auto Trader Group has higher revenue and earnings than PetMed Express.
Risk and Volatility
PetMed Express has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Auto Trader Group has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for PetMed Express and Auto Trader Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PetMed Express | 1 | 1 | 0 | 0 | 1.50 |
| Auto Trader Group | 1 | 3 | 1 | 0 | 2.00 |
Summary
Auto Trader Group beats PetMed Express on 9 of the 11 factors compared between the two stocks.
About PetMed Express
PetMed Express, Inc., together with its subsidiaries, operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, health products, and other supplies for dogs, cats, and horses. It offers non-prescription medications and supplies, such as flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and household pet supplies; and prescription medications, including heartworm preventatives, flea and tick preventatives, arthritis, dermatitis, thyroid, diabetes, pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes. The company also sells food, beds, crates, stairs, and other pet supplies. It sells its products through its Internet website; mobile app; customer support center; and direct mail/print, which includes brochures and postcards. The company was incorporated in 1996 and is headquartered in Delray Beach, Florida.
About Auto Trader Group
Auto Trader Group plc operates in the digital automotive marketplace in the United Kingdom and Ireland. The company provides vehicle advertisement on its websites for private sellers, as well as insurance and loan financing products to consumers; and display advertising on its websites for manufacturers and their advertising agencies. The company offers its products to retailers, home traders, and logistics firms. Auto Trader Group plc was founded in 1977 and is headquartered in Manchester, the United Kingdom.
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