DAVIDsTEA (NASDAQ: DTEA) is one of 23 publicly-traded companies in the “Food Retail & Distribution” industry, but how does it weigh in compared to its competitors? We will compare DAVIDsTEA to similar businesses based on the strength of its earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Institutional and Insider Ownership

18.8% of DAVIDsTEA shares are held by institutional investors. Comparatively, 56.1% of shares of all “Food Retail & Distribution” companies are held by institutional investors. 17.7% of shares of all “Food Retail & Distribution” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares DAVIDsTEA and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DAVIDsTEA -3.98% 1.51% 1.19%
DAVIDsTEA Competitors 0.82% 32.88% 4.20%

Volatility & Risk

DAVIDsTEA has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, DAVIDsTEA’s competitors have a beta of 0.93, suggesting that their average share price is 7% less volatile than the S&P 500.

Valuation and Earnings

This table compares DAVIDsTEA and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
DAVIDsTEA N/A N/A -20.19
DAVIDsTEA Competitors $21.37 billion $977.24 million 37.93

DAVIDsTEA’s competitors have higher revenue and earnings than DAVIDsTEA. DAVIDsTEA is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent recommendations and price targets for DAVIDsTEA and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DAVIDsTEA 1 3 0 0 1.75
DAVIDsTEA Competitors 702 1425 1408 22 2.21

DAVIDsTEA currently has a consensus target price of $6.75, suggesting a potential upside of 28.57%. As a group, “Food Retail & Distribution” companies have a potential upside of 4.25%. Given DAVIDsTEA’s higher possible upside, research analysts clearly believe DAVIDsTEA is more favorable than its competitors.

Summary

DAVIDsTEA competitors beat DAVIDsTEA on 10 of the 12 factors compared.

About DAVIDsTEA

DAVIDsTEA Inc. is engaged in the retail and online sale of tea, tea accessories, and food and beverages in Canada and in the United States. The Company’s segments include Canada and the U.S. The Company is a branded retailer of specialty tea, offering approximately 150 loose-leaf teas, pre-packaged teas, tea sachets and tea-related gifts, accessories, and food and beverages primarily through approximately 190 DAVIDsTEA stores, which are operated by the Company, and its Website, davidstea.com. Additionally, the Company offers on-the-go tea beverages in its retail stores. The Company’s tea accessories include tea mugs, travel mugs, teacup sets, teapots, tea makers, kettles, infusers, filters, frothers, tins and spoons. The Company offers beverages range from the standard hot or iced tea to its Tea Lattes. The Company’s different flavors of loose-leaf tea span eight tea categories: white, green, oolong, black, pu’erh, mate, rooibos and herbal tea.

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