Rent-A-Center (NASDAQ: RCII) and Dover Saddlery (NASDAQ:DOVR) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Analyst Ratings

This is a summary of current ratings and price targets for Rent-A-Center and Dover Saddlery, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rent-A-Center 2 3 2 1 2.25
Dover Saddlery 0 1 0 0 2.00

Rent-A-Center currently has a consensus target price of $11.00, suggesting a potential downside of 15.38%. Given Rent-A-Center’s stronger consensus rating and higher possible upside, equities analysts clearly believe Rent-A-Center is more favorable than Dover Saddlery.

Valuation & Earnings

This table compares Rent-A-Center and Dover Saddlery’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rent-A-Center $2.80 billion 0.25 $104.70 million N/A N/A
Dover Saddlery N/A N/A N/A N/A N/A

Rent-A-Center has higher revenue and earnings than Dover Saddlery.

Profitability

This table compares Rent-A-Center and Dover Saddlery’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rent-A-Center -5.57% -43.47% -8.79%
Dover Saddlery -3.40% -17.52% -6.75%

Dividends

Rent-A-Center pays an annual dividend of $0.32 per share and has a dividend yield of 2.5%. Dover Saddlery does not pay a dividend.

Summary

Rent-A-Center beats Dover Saddlery on 6 of the 9 factors compared between the two stocks.

Rent-A-Center Company Profile

Rent-A-Center, Inc. is a rent-to-own operator in North America. The Company provides an opportunity to obtain ownership of products, such as consumer electronics, appliances, computers (including tablets), smartphones and furniture (including accessories), under rental purchase agreements. The Company operates in four segments: Core U.S., Acceptance Now, Mexico, and Franchising. As of December 31, 2016, the Company operated over 2,463 Company-owned stores in the United States, Canada and Puerto Rico. The Company’s Mexico segment consists of the Company-owned rent-to-own stores in Mexico. As of December 31, 2016, the Company operated 130 stores in this segment. Its Franchising segment engages in the sale of rental merchandise to its franchisees. As of December 31, 2016, the Company’s Franchising segment franchised 229 stores in 31 states operating under the Rent-A-Center (152 stores), ColorTyme (39 stores) and RimTyme (38 stores) names.

Dover Saddlery Company Profile

Dover Saddlery, Inc. is a retailer and omni-channel marketer of equestrian products in the United States. The Company sells its products through omni-channel, including direct and retail. The Company offers a range of products required to own, ride, train and compete with a horse. The Company’s equestrian product line includes a range of separate items such as saddles, tack, specialized apparel, footwear, horse clothing, horse health and stable products. As of December 31, 2013, the Company, through its subsidiaries, operates twenty-one retail stores under the Dover Saddlery brand and one retail store under the Smith Brothers brand. It maintains two catalogs. The Dover Saddlery catalog caters to the mid to high-end, English-style, equestrian products customer. The Smith Brothers catalog is aimed at the Western-style, equestrian products customer. The Company offers web-base marketing through its Websites www.doversaddlery.com and www.smithbrothers.com.

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