Analyzing Big Tree Cloud (NASDAQ:DSY) and Grocery Outlet (NASDAQ:GO)

Grocery Outlet (NASDAQ:GO) and Big Tree Cloud (NASDAQ:DSY) are both small-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares Grocery Outlet and Big Tree Cloud’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grocery Outlet	-0.10%	5.86%	2.13%
Big Tree Cloud	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations for Grocery Outlet and Big Tree Cloud, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grocery Outlet	2	7	4	0	2.15
Big Tree Cloud	1	0	0	0	1.00

Grocery Outlet presently has a consensus price target of $14.50, suggesting a potential upside of 41.05%. Given Grocery Outlet’s stronger consensus rating and higher probable upside, analysts plainly believe Grocery Outlet is more favorable than Big Tree Cloud.

Institutional and Insider Ownership

99.9% of Grocery Outlet shares are owned by institutional investors. Comparatively, 60.2% of Big Tree Cloud shares are owned by institutional investors. 4.5% of Grocery Outlet shares are owned by company insiders. Comparatively, 34.1% of Big Tree Cloud shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Grocery Outlet has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Big Tree Cloud has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Valuation & Earnings

This table compares Grocery Outlet and Big Tree Cloud”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grocery Outlet	$4.57 billion	0.22	$39.47 million	($0.05)	-205.60
Big Tree Cloud	$2.56 million	7.65	-$32.53 million	N/A	N/A

Grocery Outlet has higher revenue and earnings than Big Tree Cloud.

Summary

Grocery Outlet beats Big Tree Cloud on 8 of the 12 factors compared between the two stocks.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.

About Big Tree Cloud

Big Tree Cloud Holdings Limited manufactures and sells personal care products and other consumer goods. The company is based in Shenzhen, China. Big Tree Cloud Holdings Limited operates as a subsidiary of Ploutos Group Limited.