ASOS (OTCMKTS:ASOMF – Get Free Report) and Solo Brands (NYSE:DTC – Get Free Report) are both consumer cyclical companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Institutional & Insider Ownership
28.2% of ASOS shares are owned by institutional investors. Comparatively, 84.5% of Solo Brands shares are owned by institutional investors. 0.7% of Solo Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for ASOS and Solo Brands, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
ASOS | 1 | 0 | 0 | 0 | 1.00 |
Solo Brands | 1 | 6 | 1 | 0 | 2.00 |
Earnings and Valuation
This table compares ASOS and Solo Brands”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
ASOS | N/A | N/A | N/A | $0.45 | 12.16 |
Solo Brands | $492.52 million | 0.24 | -$111.35 million | ($2.01) | -0.63 |
ASOS has higher earnings, but lower revenue than Solo Brands. Solo Brands is trading at a lower price-to-earnings ratio than ASOS, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ASOS and Solo Brands’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
ASOS | N/A | N/A | N/A |
Solo Brands | -25.62% | 6.02% | 3.55% |
Summary
Solo Brands beats ASOS on 8 of the 11 factors compared between the two stocks.
About ASOS
ASOS Plc operates as an online fashion retailer in the United Kingdom, the United States, Australia, France, Germany, Spain, Italy, Sweden, the Netherlands, Denmark, Poland, and internationally. It offers womenswear and menswear products. The company sells its products under the ASOS Design, ASOS Edition, ASOS Luxe, ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge, HIIT, AsYou, Dark Future, UNRVLLD/SPPLY, Crooked Tongues, Daysocial, Actual, and Weekend Collective brands, as well as through third-party brands. It is also involved in the employer of marketing staff and payment processing businesses, as well as acts as a vehicle for issue of convertible bonds. ASOS Plc was incorporated in 2000 and is headquartered in London, the United Kingdom.
About Solo Brands
Solo Brands, Inc. operates a direct-to-consumer platform that offers outdoor and lifestyle branded products in the United States. The company provides camp stoves under the Solo Stove Lite brand name; fire pits under the Solo Stove brand name; kayaks under the Oru brand name; paddle boards under the ISLE brand name; and storage solutions for fire pits, firewood, and other accessories. It also offers swim trunks, casual shorts, sport products, polos, shirts, and lounge products under the Chubbies brand name; consumables, such as color packs, starters, natural charcoal, fuel, pellets, and firewood products; and accessories comprising shelters, shields, roasting sticks, tools, paddles, and pumps under the Solo Stove, Oru, and ISLE brands. Solo Brands, Inc. was founded in 2011 and is headquartered in Grapevine, Texas.
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