Comparing Monotaro (OTCMKTS:MONOY) and 1stdibs.com (NASDAQ:DIBS)

Monotaro (OTCMKTS:MONOY) and 1stdibs.com (NASDAQ:DIBS) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Risk and Volatility

Monotaro has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, 1stdibs.com has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Profitability

This table compares Monotaro and 1stdibs.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monotaro	9.36%	33.81%	24.17%
1stdibs.com	-22.58%	-20.13%	-13.77%

Institutional and Insider Ownership

0.1% of Monotaro shares are owned by institutional investors. Comparatively, 67.0% of 1stdibs.com shares are owned by institutional investors. 23.5% of 1stdibs.com shares are owned by 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.

Analyst Ratings

This is a summary of current ratings and price targets for Monotaro and 1stdibs.com, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monotaro	0	1	0	0	2.00
1stdibs.com	1	1	0	0	1.50

Earnings & Valuation

This table compares Monotaro and 1stdibs.com”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monotaro	$1.91 billion	3.41	$173.82 million	$0.48	27.03
1stdibs.com	$88.26 million	1.20	-$18.63 million	($0.55)	-5.29

Monotaro has higher revenue and earnings than 1stdibs.com. 1stdibs.com is trading at a lower price-to-earnings ratio than Monotaro, indicating that it is currently the more affordable of the two stocks.

Summary

Monotaro beats 1stdibs.com on 9 of the 12 factors compared between the two stocks.

About Monotaro

MonotaRO Co., Ltd., together with its subsidiaries, operates an online MRO products store in Japan and internationally. The company offers safety protective equipment, work clothes, and safety shoes; logistics, storage, and packing supplies; tapes; safety, disaster prevention, and crime prevention products; safety signs; ship and fishing supplies; office supplies; office furniture/lighting/cleaning supplies; cutting tools and abrasives; measurement and surveying equipment; hand tools/electric and pneumatic tools; sprays, oils, greases, and paints; adhesives and repair materials; welding supplies; and piping and water related components/pumps/pneumatic and hydraulic equipment/hoses. It also provides mechanical parts; control equipment; soldering and anti-static products; architectural hardware, building materials, painting, and interior supplies; air conditioning and electrical equipment; electrical materials; screws, bolts, nails, and materials; automotive supplies; truck supplies; motorcycle supplies; bicycle supplies; scientific research and development supplies; clean room supplies; kitchen equipment and store supplies; agricultural and gardening supplies; and medical and nursing supplies. It serves factories, construction, automobile maintenance, and other industries. The company was formerly known as Sumisho Grainger Co., Ltd. and changed its name to MonotaRO Co., Ltd. in February 2006. The company was incorporated in 2000 and is headquartered in Osaka, Japan. MonotaRO Co., Ltd. operates as a subsidiary of Grainger Global Holdings, Inc.

About 1stdibs.com

1stdibs.Com, Inc. operates an online marketplace for luxury design products worldwide. Its marketplace connects customers with sellers and makers of vintage, antique, and contemporary furniture; and home décor, jewelry, watches, art, and fashion products. The company was incorporated in 2000 and is headquartered in New York, New York.