Dover Saddlery (NASDAQ: DOVR) and Barnes & Noble Education (NYSE:BNED) are both cyclical consumer goods & services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Dover Saddlery and Barnes & Noble Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dover Saddlery -3.40% -17.52% -6.75%
Barnes & Noble Education -0.08% -0.12% -0.06%

Institutional and Insider Ownership

69.0% of Barnes & Noble Education shares are owned by institutional investors. 3.5% of Barnes & Noble Education shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Dover Saddlery and Barnes & Noble Education’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dover Saddlery N/A N/A N/A N/A N/A
Barnes & Noble Education $1.99 billion 0.15 $82.02 million ($0.04) -159.21

Barnes & Noble Education has higher revenue and earnings than Dover Saddlery.

Analyst Recommendations

This is a summary of current ratings and target prices for Dover Saddlery and Barnes & Noble Education, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dover Saddlery 0 0 0 0 N/A
Barnes & Noble Education 0 0 2 0 3.00

Barnes & Noble Education has a consensus target price of $12.00, suggesting a potential upside of 88.38%. Given Barnes & Noble Education’s higher probable upside, analysts clearly believe Barnes & Noble Education is more favorable than Dover Saddlery.

Summary

Barnes & Noble Education beats Dover Saddlery on 8 of the 8 factors compared between the two stocks.

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.

Barnes & Noble Education Company Profile

Barnes & Noble Education, Inc. is a contract operator of bookstores on college and university campuses across the United States and a provider of digital education services. The Company offers a support system, and a retail and digital learning experience for students. Through its subsidiary, Barnes & Noble College Booksellers, LLC, the Company operates approximately 750 campus bookstores and the school-branded e-commerce sites for each store, serving over five million college students and their faculty. The Company offers a set of products and services to help students, faculty and administrators achieve their shared educational and social goals. Its suite of product offerings includes Textbook and Course Material Sales, Textbook and Course Material Rentals, General Merchandise, Trade, Digital Education and Brand Partnerships. The Company also offers other merchandise, such as laptops and other technology products, notebooks, backpacks, school and dormitory supplies and related items.

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