Analyzing Gaia (GAIA) & Coastal Contacts (COA)

Gaia (NASDAQ: GAIA) and Coastal Contacts (NASDAQ:COA) are both small-cap cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

32.1% of Gaia shares are held by institutional investors. 42.8% of Gaia shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Gaia and Coastal Contacts’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gaia $17.25 million 10.86 $87.06 million ($1.42) -8.70
Coastal Contacts N/A N/A N/A ($0.48) -23.52

Gaia has higher revenue and earnings than Coastal Contacts. Coastal Contacts is trading at a lower price-to-earnings ratio than Gaia, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Gaia and Coastal Contacts, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gaia 0 0 1 0 3.00
Coastal Contacts 0 0 0 0 N/A

Gaia currently has a consensus target price of $17.00, indicating a potential upside of 37.65%. Given Gaia’s higher possible upside, research analysts clearly believe Gaia is more favorable than Coastal Contacts.

Profitability

This table compares Gaia and Coastal Contacts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gaia -85.33% -24.17% -21.99%
Coastal Contacts N/A N/A N/A

Summary

Gaia beats Coastal Contacts on 5 of the 9 factors compared between the two stocks.

Gaia Company Profile

Gaia, Inc., formerly Gaiam, Inc., is engaged in providing global digital video subscription service. The Company is a global digital video streaming service and online community delivering curated media to its subscribers in over 120 countries. It provides its members access to approximately 7,000 video titles. Its video content is available to its subscribers through online digital streaming on virtually any Internet-connected device on a commercial-free basis. In addition to streaming, the Company’s subscribers can download its video content to their devices, so they can view its content without being actively connected to the Internet. Through the Gaia service, the Company’s subscribers have access to a library of inspiring films, personal growth-related content, documentaries, interviews, yoga classes and fitness. The Company has also created a fitness and yoga-focused version of its video service. The Company also operates a digital versatile disc (DVD) subscription club.

Coastal Contacts Company Profile

Coastal Contacts Inc. is an online retailer of eyewear serving markets in North America, Europe and Asia Pacific. The Company operates in two primary product segments: contact lenses and glasses. The Company has approximately nine stores in Canada and Sweden. It sells contact lenses manufactured by multinational companies, such as Vistakon (a division of Johnson and Johnson Vision Care Inc.), Alcon, Inc., Bausch & Lomb Inc. and Coopervision Inc. Its products are offered for sale by telephone, e9 mail, through its Websites, which include www.ClearlyContacts.ca, www.ClearlyContacts.com.au, www.ClearlyContacts.co.nz, www.LensWay.se, www.LensWay.fi, www.LensWay.nl, www.LensWay.no, www.LensWay.co.uk, and www.ContactSan.com or at one of its nine physical retail locations. In April 2014, the Company announced that Essilor International (Compagnie Generale d’Optique), S.A. (Essilor) has indirectly acquired the interest of Coastal.com.

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