GoPro (NASDAQ:GPRO – Get Free Report) and Aterian (NASDAQ:ATER – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.
Risk & Volatility
GoPro has a beta of 2.57, suggesting that its stock price is 157% more volatile than the S&P 500. Comparatively, Aterian has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.
Profitability
This table compares GoPro and Aterian’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GoPro | -28.52% | -381.63% | -28.86% |
| Aterian | -49.30% | -92.04% | -47.83% |
Earnings & Valuation
This table compares GoPro and Aterian”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GoPro | $568.59 million | 0.22 | -$92.64 million | ($0.99) | -0.68 |
| Aterian | $68.85 million | 0.12 | -$18.98 million | ($1.99) | -0.43 |
Aterian has lower revenue, but higher earnings than GoPro. GoPro is trading at a lower price-to-earnings ratio than Aterian, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for GoPro and Aterian, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GoPro | 1 | 1 | 0 | 0 | 1.50 |
| Aterian | 1 | 0 | 0 | 0 | 1.00 |
Insider and Institutional Ownership
70.1% of GoPro shares are held by institutional investors. Comparatively, 7.0% of Aterian shares are held by institutional investors. 18.1% of GoPro shares are held by insiders. Comparatively, 19.5% of Aterian shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
GoPro beats Aterian on 8 of the 12 factors compared between the two stocks.
About GoPro
GoPro, Inc. develops and sells cameras and related products for capturing and sharing action and outdoor footage. Its lineup includes rugged action cameras, compact cameras and accessories such as mounts and other gear for different activities and recording setups. The company also offers mobile and desktop software for editing and managing content, along with subscription services that provide features such as cloud storage and access to select services and benefits. GoPro sells its products through its website, retailers and distributors in markets around the world.
About Aterian
Aterian, Inc. (NASDAQ: ATER) is a technology-enabled consumer products company that develops, acquires and sells products through online retail channels. Its portfolio has included household, kitchen, health and wellness, beauty, outdoor and other consumer-focused products marketed under a range of brands. The company uses data analytics, software and automation to identify product opportunities, manage sourcing and manufacturing, optimize marketing, and support sales and inventory decisions. Aterian distributes its products primarily through third-party e-commerce marketplaces, including Amazon and Walmart, as well as through company-operated websites and other online channels.
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