Gaia (NASDAQ: GAIA) and Container Store Group (NYSE:TCS) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Institutional and Insider Ownership
32.1% of Gaia shares are owned by institutional investors. Comparatively, 77.5% of Container Store Group shares are owned by institutional investors. 42.8% of Gaia shares are owned by insiders. Comparatively, 65.7% of Container Store Group shares are owned by 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.
Volatility and Risk
Gaia has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Container Store Group has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500.
This table compares Gaia and Container Store Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Container Store Group||0.59%||6.18%||1.76%|
Earnings and Valuation
This table compares Gaia and Container Store Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gaia||$17.25 million||10.86||$87.06 million||($1.39)||-8.88|
|Container Store Group||$819.93 million||0.35||$14.95 million||$0.10||59.40|
Gaia has higher earnings, but lower revenue than Container Store Group. Gaia is trading at a lower price-to-earnings ratio than Container Store Group, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for Gaia and Container Store Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Container Store Group||1||3||0||0||1.75|
Gaia currently has a consensus target price of $17.00, indicating a potential upside of 37.65%. Container Store Group has a consensus target price of $4.83, indicating a potential downside of 18.63%. Given Gaia’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Gaia is more favorable than Container Store Group.
Container Store Group beats Gaia on 8 of the 13 factors compared between the two stocks.
Gaia, Inc., formerly Gaiam, Inc., is engaged in providing global digital video subscription service. The Company is a global digital video streaming service and online community delivering curated media to its subscribers in over 120 countries. It provides its members access to approximately 7,000 video titles. Its video content is available to its subscribers through online digital streaming on virtually any Internet-connected device on a commercial-free basis. In addition to streaming, the Company’s subscribers can download its video content to their devices, so they can view its content without being actively connected to the Internet. Through the Gaia service, the Company’s subscribers have access to a library of inspiring films, personal growth-related content, documentaries, interviews, yoga classes and fitness. The Company has also created a fitness and yoga-focused version of its video service. The Company also operates a digital versatile disc (DVD) subscription club.
About Container Store Group
The Container Store Group, Inc. is a specialty retailer of storage and organization products. The Company’s segments include The Container Store (TCS), Elfa and Corporate/Other. The Company’s TCS segment consists of its retail stores, Website and call center, as well as its installation and organizational services business. The Company’s Elfa segment includes the manufacturing business that produces the elfa brand products that are sold domestically, exclusively through the TCS segment, as well as throughout Europe. Its Swedish subsidiary, Elfa International AB (Elfa), designs and manufactures component-based shelving and drawer systems and made-to-measure sliding doors. It merchandises over 11,000 products in each of its stores and online. Its stores are organized into various lifestyle departments, which include Bath, Box, Closets, Collections, Containers, Custom Closets, Food Storage, Gift Packaging, Hooks, Kitchen, Laundry, Office, Shelving, Storage, Trash and Travel.
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