Financial Comparison: Aterian (NASDAQ:ATER) and Dorel Industries (OTCMKTS:DIIBF)

Dorel Industries (OTCMKTS:DIIBF – Get Free Report) and Aterian (NASDAQ:ATER – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Institutional & Insider Ownership

7.0% of Aterian shares are held by institutional investors. 19.3% of Dorel Industries shares are held by insiders. Comparatively, 19.5% of Aterian shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Dorel Industries has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500. Comparatively, Aterian has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Valuation & Earnings

This table compares Dorel Industries and Aterian”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dorel Industries $1.19 billion 0.03 -$142.22 million ($4.16) -0.25
Aterian $68.85 million 0.08 -$18.98 million ($1.99) -0.29

Aterian has lower revenue, but higher earnings than Dorel Industries. Aterian is trading at a lower price-to-earnings ratio than Dorel Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Dorel Industries and Aterian’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dorel Industries -12.73% N/A -11.89%
Aterian -49.30% -92.04% -47.83%

Analyst Recommendations

This is a breakdown of recent recommendations for Dorel Industries and Aterian, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dorel Industries 0 1 0 0 2.00
Aterian 1 0 0 0 1.00

Summary

Dorel Industries beats Aterian on 7 of the 12 factors compared between the two stocks.

About Dorel Industries

(Get Free Report)

Dorel Industries Inc. engages in the design, manufacture, sourcing, marketing, and distribution of home and juvenile products worldwide. The company operates through Dorel Home and Dorel Juvenile segments. The Dorel Home segment offers ready-to assemble furniture and home furnishings products, including metal folding furniture, futons, children's furniture, step stools, hand trucks, ladders, outdoor furniture, and other imported furniture items. This segment markets its products under the DHP, Signature Sleep, Little Seeds, Ameriwood Home, Cosco Home & Office, Queer Eye, Cosmo Living, Novogratz, Real Rooms, Mr. Kate, Baby Relax, Alphason, Bertini, Ntense, and Notio brands. The Dorel Juvenile segment provides children's accessories comprising infant car seats, strollers, home equipment, toys, infant health, and safety aids under the Maxi-Cosi, Tiny Love, Infanti, Safety 1st, Bébé Confort, Quinny, and Cosco brands. The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in May 1987. Dorel Industries Inc. was incorporated in 1962 and is headquartered in Westmount, Canada.

About Aterian

(Get Free Report)

Aterian, Inc., together with its subsidiaries, operates as a technology-enabled consumer products company in North America and internationally. Its platform offers home and kitchen appliances; kitchenware; cooling and air quality appliances, such as dehumidifiers; health and beauty products; and essential oils under the Squatty Potty, hOmeLabs, Mueller, Pursteam, Healing Solutions, and Photo Paper Direct brand names. The company primarily serves individual online consumers through online retail channels, such as Amazon and Walmart, as well as through its owned and operated websites and other marketplaces. The company was formerly known as Mohawk Group Holdings, Inc. and changed its name to Aterian, Inc. in April 2021. Aterian, Inc. was founded in 2014 and is headquartered in Summit, New Jersey.

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