Analyzing Grocery Outlet (NASDAQ:GO) & Greystone Logistics (OTCMKTS:GLGI)

Greystone Logistics (OTCMKTS:GLGI) and Grocery Outlet (NASDAQ:GO) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Greystone Logistics and Grocery Outlet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greystone Logistics	0	0	0	0	0.00
Grocery Outlet	2	7	4	0	2.15

Grocery Outlet has a consensus price target of $15.55, indicating a potential upside of 37.09%. Given Grocery Outlet’s stronger consensus rating and higher probable upside, analysts clearly believe Grocery Outlet is more favorable than Greystone Logistics.

Valuation and Earnings

This table compares Greystone Logistics and Grocery Outlet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greystone Logistics	$57.87 million	0.27	$2.35 million	$0.03	19.33
Grocery Outlet	$4.37 billion	0.25	$39.47 million	($0.05)	-226.80

Grocery Outlet has higher revenue and earnings than Greystone Logistics. Grocery Outlet is trading at a lower price-to-earnings ratio than Greystone Logistics, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Greystone Logistics has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Grocery Outlet has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Insider & Institutional Ownership

10.3% of Greystone Logistics shares are held by institutional investors. Comparatively, 99.9% of Grocery Outlet shares are held by institutional investors. 4.5% of Grocery Outlet shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Greystone Logistics and Grocery Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greystone Logistics	1.66%	4.35%	1.93%
Grocery Outlet	-0.10%	5.86%	2.13%

Summary

Grocery Outlet beats Greystone Logistics on 10 of the 14 factors compared between the two stocks.

About Greystone Logistics

Greystone Logistics, Inc., through its subsidiaries, manufactures and markets plastic pallets and pelletized recycled plastic resins in the United States. The company offers rackable, can, nestable, display, monoblock, half-barrel and slim keg stackable, drum, and mid duty pallets. It sells its pallets directly, as well as through a network of independent contractor distributors. The company was formerly known as PalWeb Corporation and changed its name to Greystone Logistics, Inc. in March 2005. Greystone Logistics, Inc. was incorporated in 1969 and is based in Tulsa, Oklahoma.

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.