Head-To-Head Survey: Citi Trends (NASDAQ:CTRN) vs. PetMed Express (NASDAQ:PETS)

PetMed Express (NASDAQ:PETS) and Citi Trends (NASDAQ:CTRN) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Profitability

This table compares PetMed Express and Citi Trends’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PetMed Express	-17.34%	-91.69%	-35.15%
Citi Trends	0.84%	8.11%	2.00%

Volatility & Risk

PetMed Express has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Citi Trends has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500.

Insider & Institutional Ownership

73.3% of PetMed Express shares are owned by institutional investors. 1.3% of PetMed Express shares are owned by insiders. Comparatively, 9.6% of Citi Trends shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares PetMed Express and Citi Trends”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PetMed Express	$179.02 million	0.15	-$57.29 million	($1.38)	-0.88
Citi Trends	$819.96 million	0.46	$5.21 million	$0.82	54.89

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for PetMed Express and Citi Trends, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PetMed Express	3	0	0	0	1.00
Citi Trends	1	0	2	0	2.33

PetMed Express currently has a consensus price target of $1.40, indicating a potential upside of 14.75%. Citi Trends has a consensus price target of $81.00, indicating a potential upside of 79.96%. Given Citi Trends’ stronger consensus rating and higher probable upside, analysts clearly believe Citi Trends is more favorable than PetMed Express.

Summary

Citi Trends beats PetMed Express on 13 of the 14 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 Citi Trends

Citi Trends, Inc. operates as a value retailer of fashion apparel, accessories, and home goods. The company offers apparel, such as fashion sportswear and footwear for men and ladies, as well as apparel for kids, including newborns, infants, toddlers, boys, and girls; sleepwear, lingerie, and scrubs for ladies; and kids uniforms and accessories. It also provides accessories and beauty products that include handbags, luggage, hats, belts, sunglasses, jewelry, and watches, as well as offers outerwear for men and women. In addition, the company offers home and lifestyle products comprising home products for the bedroom, bathroom, kitchen, and decorative accessories; and food, tech, team sports, health and products, as well as seasonal items, books, and toys. Citi Trends, Inc. provides its products primarily to African American and multicultural families in the United States. The company was formerly known as Allied Fashion, Inc. and changed its name to Citi Trends, Inc. in 2001. Citi Trends, Inc. was founded in 1946 and is headquartered in Savannah, Georgia.