Analyzing ASOS (OTCMKTS:ASOMF) and Solo Brands (NYSE:DTC)

ASOS (OTCMKTS:ASOMF) and Solo Brands (NYSE:DTC) 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

Solo Brands has a consensus target price of $2.93, indicating a potential upside of 130.07%. Given Solo Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Solo Brands is more favorable than ASOS.

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.