Critical Comparison: Big Tree Cloud (NASDAQ:DSY) & Nestle (OTCMKTS:NSRGY)

Nestle (OTCMKTS:NSRGY) and Big Tree Cloud (NASDAQ:DSY) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Earnings and Valuation

This table compares Nestle and Big Tree Cloud”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nestle	$103.78 billion	2.44	$12.36 billion	N/A	N/A
Big Tree Cloud	$2.56 million	11.16	-$32.53 million	N/A	N/A

Nestle has higher revenue and earnings than Big Tree Cloud.

Analyst Recommendations

This is a summary of recent ratings and target prices for Nestle and Big Tree Cloud, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nestle	1	3	1	0	2.00
Big Tree Cloud	1	0	0	0	1.00

Nestle presently has a consensus target price of $91.00, suggesting a potential downside of 7.40%. Given Nestle’s stronger consensus rating and higher possible upside, research analysts plainly believe Nestle is more favorable than Big Tree Cloud.

Volatility & Risk

Nestle has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Big Tree Cloud has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Insider and Institutional Ownership

0.6% of Nestle shares are owned by institutional investors. Comparatively, 60.2% of Big Tree Cloud shares are owned by institutional investors. 34.1% of Big Tree Cloud shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nestle	N/A	N/A	N/A
Big Tree Cloud	N/A	N/A	N/A

Summary

Nestle beats Big Tree Cloud on 5 of the 9 factors compared between the two stocks.

About Nestle

Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone North America; Zone Europe; Zone Asia, Oceania, and Africa; Zone Latin America; Zone Greater China; Nespresso; and Nestlé Health Science segments. It offers baby foods under the Cerelac, Gerber, Nido, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, Vittel, Buxton, Erikli, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Smarties, Aero, Nestlé Les Recettes de l'Atelier, Milkybar, Baci Perugina, Quality Street, and Fitness brands. The company provides coffee products under the Nescafé, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, and Blue Bottle Coffee brands; culinary, chilled, and frozen foods under the Maggi, DiGiorno, Thomy, Garden Gourmet, Sweet Earth, Hot Pockets, Stouffer's, Buitoni, Lean, and Life Cuisine brands; dairy products under the Carnation, Nido, Bear, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, Nescafé, and Milo brands. In addition, it offers food service products under the Milo, Nescafé, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Minor's, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Garden of Life, Nature's Bounty, Persona, Vital Proteins, Solgar, Peptamen, Resource, Vitaflo, Impact, and Compleat brands; ice cream products under the Movenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland.

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.