Winmark (NASDAQ:WINA – Get Free Report) and Petco Health and Wellness (NASDAQ:WOOF – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Profitability
This table compares Winmark and Petco Health and Wellness’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Winmark | 49.45% | -95.03% | 102.38% |
| Petco Health and Wellness | -1.10% | -4.29% | -0.92% |
Earnings and Valuation
This table compares Winmark and Petco Health and Wellness”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Winmark | $81.29 million | 16.58 | $39.95 million | $11.19 | 34.13 |
| Petco Health and Wellness | $6.12 billion | 0.14 | -$101.82 million | ($0.24) | -11.50 |
Winmark has higher earnings, but lower revenue than Petco Health and Wellness. Petco Health and Wellness is trading at a lower price-to-earnings ratio than Winmark, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Winmark and Petco Health and Wellness, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Winmark | 0 | 0 | 0 | 0 | 0.00 |
| Petco Health and Wellness | 0 | 5 | 3 | 0 | 2.38 |
Petco Health and Wellness has a consensus price target of $3.75, indicating a potential upside of 35.78%. Given Petco Health and Wellness’ stronger consensus rating and higher possible upside, analysts clearly believe Petco Health and Wellness is more favorable than Winmark.
Insider and Institutional Ownership
73.3% of Winmark shares are held by institutional investors. 10.1% of Winmark shares are held by company insiders. Comparatively, 4.4% of Petco Health and Wellness shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Winmark has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Petco Health and Wellness has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500.
Summary
Winmark beats Petco Health and Wellness on 8 of the 14 factors compared between the two stocks.
About Winmark
Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.
About Petco Health and Wellness
Petco Health and Wellness Company, Inc., operates as a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites. The company offers its products under the WholeHearted, Reddy, and Well & Good brands. Petco Health and Wellness Company, Inc. was founded in 1965 and is headquartered in San Diego, California.
Receive News & Ratings for Winmark Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Winmark and related companies with MarketBeat.com's FREE daily email newsletter.
