Critical Comparison: Clarus (NASDAQ:CLAR) and Dometic Gp (OTCMKTS:DTCGF)

Clarus (NASDAQ:CLAR) and Dometic Gp (OTCMKTS:DTCGF) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Valuation and Earnings

This table compares Clarus and Dometic Gp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clarus	$250.44 million	0.46	-$46.56 million	($1.16)	-2.60
Dometic Gp	$2.15 billion	0.43	$43.74 million	$0.14	20.64

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

Volatility & Risk

Clarus has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Dometic Gp has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Clarus and Dometic Gp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clarus	1	3	1	0	2.00
Dometic Gp	0	0	0	0	0.00

Clarus presently has a consensus price target of $3.63, indicating a potential upside of 20.31%. Given Clarus’ stronger consensus rating and higher probable upside, analysts clearly believe Clarus is more favorable than Dometic Gp.

Insider & Institutional Ownership

90.3% of Clarus shares are held by institutional investors. 23.5% of Clarus shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Clarus and Dometic Gp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clarus	-17.70%	-0.11%	-0.08%
Dometic Gp	2.02%	3.60%	1.64%

About Clarus

Clarus Corporation designs, develops, manufactures, and distributes outdoor equipment and lifestyle products in the United States and internationally. The company operates through two segments, Outdoor and Adventure. The Outdoor segment offers apparels, such as shells, insulation, midlayers, pants, and logowear; rock-climbing footwear and equipment, including carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gears; technical backpacks and day packs; trekking poles; headlamps and lanterns; gloves and mittens; and skis, ski poles, ski skins, avalanche airbag systems, avalanche transceivers, shovels, and probes. This segment offers its products for climbing, mountaineering, trail running, backpacking, skiing, and other outdoor recreation activities under the Black Diamond Equipment and PIEPS brands. The Adventure segment offers engineered automotive roof racks, trays, mounting systems, luggage boxes, carriers, recovery boards, and accessories under the Rhino-Rack brand; and overlanding and off-road vehicle recovery and extraction tracks for the overland and the off-road market under the MAXTRAX brand, as well as sells and retails overlanding and off-road vehicle under the TRED brand. It markets and distributes its products through independent specialty stores and specialty chains, sporting goods and outdoor recreation stores, distributors, and original equipment manufacturers; and independent distributors, as well as through its websites. The company was formerly known as Black Diamond, Inc. and changed its name to Clarus Corporation in August 2017. The company was founded in 1957 and is headquartered in Salt Lake City, Utah.

About Dometic Gp

Dometic Group AB (publ), together with its subsidiaries, provides solutions for mobile living in the areas of food and beverage, climate, power and control, safety and security, and hygiene and sanitation in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company offers climate control products, such as air conditioners, awnings, blinds, windows and doors, ventilation products, furnaces, and patio rooms and tents for recreational vehicles, boats, and trucks; food and beverage products, including refrigerators, coolers, stoves, ovens, microwaves, and coffee machines; and safety and security products comprising safety doors, alarms, safes, and gas detectors, as well as driving support accessories. It also provides electrical and control solutions, which include steering systems, inverters, generators, chargers, and control products, as well as related accessories; and hygiene and sanitation products, such as toilets, holding tanks, pumps, water makers, vacuum cleaners, chemicals and consumables, washers and dryers, and water heaters, as well as related accessories. In addition, the company offers vessel controls, and fuel and system integration systems to the leisure marine industry; and marine blinds, screens, and soft furnishings for the leisure marine and yacht segments. Dometic Group AB (publ) provides its products for use in recreational vehicles, pleasure boats, workboats, trucks, cars, and others. The company was founded in 1922 and is headquartered in Solna, Sweden.