Head to Head Contrast: Grocery Outlet (NASDAQ:GO) vs. Big Tree Cloud (NASDAQ:DSY)

Big Tree Cloud (NASDAQ:DSY) and Grocery Outlet (NASDAQ:GO) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Risk and Volatility

Big Tree Cloud has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Grocery Outlet has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Profitability

This table compares Big Tree Cloud and Grocery Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Big Tree Cloud	N/A	N/A	N/A
Grocery Outlet	-0.10%	5.86%	2.13%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Big Tree Cloud and Grocery Outlet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Big Tree Cloud	1	0	0	0	1.00
Grocery Outlet	2	7	4	0	2.15

Grocery Outlet has a consensus target price of $14.14, suggesting a potential upside of 38.59%. Given Grocery Outlet’s stronger consensus rating and higher probable upside, analysts plainly believe Grocery Outlet is more favorable than Big Tree Cloud.

Institutional and Insider Ownership

60.2% of Big Tree Cloud shares are held by institutional investors. Comparatively, 99.9% of Grocery Outlet shares are held by institutional investors. 34.1% of Big Tree Cloud shares are held by insiders. Comparatively, 4.5% of Grocery Outlet shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Big Tree Cloud and Grocery Outlet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Big Tree Cloud	$2.56 million	6.55	-$32.53 million	N/A	N/A
Grocery Outlet	$4.37 billion	0.23	$39.47 million	($0.05)	-204.00

Grocery Outlet has higher revenue and earnings than Big Tree Cloud.

Summary

Grocery Outlet beats Big Tree Cloud on 8 of the 12 factors compared between the two stocks.

About Big Tree Cloud

Big Tree Cloud Holdings Limited manufactures and sells personal care products and other consumer goods. The company is based in Shenzhen, China. Big Tree Cloud Holdings Limited operates as a subsidiary of Ploutos Group Limited.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.