Hour Loop (NASDAQ:HOUR) versus PSQ (NYSE:PSQH) Critical Comparison

PSQ (NYSE:PSQH) and Hour Loop (NASDAQ:HOUR) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for PSQ and Hour Loop, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PSQ	1	0	1	0	2.00
Hour Loop	1	0	0	0	1.00

PSQ presently has a consensus target price of $3.50, suggesting a potential upside of 439.29%. Given PSQ’s stronger consensus rating and higher possible upside, equities research analysts clearly believe PSQ is more favorable than Hour Loop.

Earnings and Valuation

This table compares PSQ and Hour Loop”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PSQ	$23.20 million	1.29	-$57.69 million	($1.20)	-0.54
Hour Loop	$138.25 million	0.45	$660,000.00	$0.03	59.33

Hour Loop has higher revenue and earnings than PSQ. PSQ is trading at a lower price-to-earnings ratio than Hour Loop, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

17.3% of PSQ shares are owned by institutional investors. Comparatively, 0.3% of Hour Loop shares are owned by institutional investors. 22.1% of PSQ shares are owned by insiders. Comparatively, 95.0% of Hour Loop shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares PSQ and Hour Loop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PSQ	-178.95%	-184.74%	-62.82%
Hour Loop	0.59%	12.96%	3.57%

Risk & Volatility

PSQ has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500. Comparatively, Hour Loop has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Summary

Hour Loop beats PSQ on 9 of the 14 factors compared between the two stocks.

About PSQ

PSQ Holdings, Inc., together with its subsidiaries, operates an online marketplace through advertising and eCommerce in the United States. It operates through two segments, Marketplace and Brands segments. The PSQ platform is accessible through its mobile application and website. The company also sells diapers and wipes to mothers online under the EveryLife brand name. PSQ Holdings, Inc. is headquartered in West Palm Beach, Florida.

About Hour Loop

Hour Loop, Inc., an online retailer, engages in e-commerce retailing in the United States. The company sells products in various categories, including home/garden décor, toys, kitchenware, apparels, and electronics products. It sells its products through hourloop.com, as well as third-party marketplaces. Hour Loop, Inc. was founded in 2013 and is headquartered in Redmond, Washington.