DavidsTea (NASDAQ:DTEA) and WM MORRISON SUP/ADR (OTCMKTS:MRWSY) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.
Volatility & Risk
DavidsTea has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, WM MORRISON SUP/ADR has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.
This table compares DavidsTea and WM MORRISON SUP/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|WM MORRISON SUP/ADR||N/A||N/A||N/A|
This is a breakdown of recent ratings and recommmendations for DavidsTea and WM MORRISON SUP/ADR, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WM MORRISON SUP/ADR||0||2||3||0||2.60|
DavidsTea currently has a consensus price target of $4.00, suggesting a potential upside of 96.08%. Given DavidsTea’s higher possible upside, research analysts plainly believe DavidsTea is more favorable than WM MORRISON SUP/ADR.
WM MORRISON SUP/ADR pays an annual dividend of $0.43 per share and has a dividend yield of 2.8%. DavidsTea does not pay a dividend. WM MORRISON SUP/ADR pays out 55.1% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares DavidsTea and WM MORRISON SUP/ADR’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DavidsTea||$173.64 million||0.31||-$22.09 million||N/A||N/A|
|WM MORRISON SUP/ADR||$22.45 billion||0.32||$404.73 million||$0.78||19.44|
WM MORRISON SUP/ADR has higher revenue and earnings than DavidsTea.
Insider and Institutional Ownership
1.3% of DavidsTea shares are held by institutional investors. Comparatively, 0.3% of WM MORRISON SUP/ADR shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
WM MORRISON SUP/ADR beats DavidsTea on 9 of the 13 factors compared between the two stocks.
DAVIDsTEA Inc. operates as a retailer of specialty tea in Canada and the United States. The company offers approximately 135 loose-leaf teas, pre-packaged teas, tea sachets and tea-related gifts, and accessories; and food, as well as tea beverages, such as hot or iced tea, and tea lattes. It provides loose-leaf tea in white, green, oolong, black, pu'erh, mate, rooibos, and herbal tea categories. As of February 03, 2018, the company owned and operated 240 DAVIDsTEA stores. It also provides its products through its Website, davidstea.com. The company was founded in 2008 and is headquartered in Mount-Royal, Canada.
About WM MORRISON SUP/ADR
Wm Morrison Supermarkets PLC operates retail super stores under the Morrisons brand name in the United Kingdom. The company is involved in in-store and online grocery retailing activities. It also manufactures and distributes fresh food, and morning goods and bread; prepares and supplies seafood; processes fresh meat; invests in, develops, and maintains properties; and offers insurance and leasing services, as well as holds pharmaceutical license. The company operates through 491 stores; and 334 petrol filling stations. Wm Morrison Supermarkets PLC was founded in 1899 and is headquartered in Bradford, the United Kingdom.
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