PetMed Express (NASDAQ:PETS – Get Free Report) and Citi Trends (NASDAQ:CTRN – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Insider and Institutional Ownership
73.3% of PetMed Express shares are owned by institutional investors. 1.3% of PetMed Express shares are owned by company insiders. Comparatively, 9.6% of Citi Trends shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations for PetMed Express and Citi Trends, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PetMed Express | 3 | 0 | 0 | 0 | 1.00 |
| Citi Trends | 0 | 1 | 2 | 0 | 2.67 |
Profitability
This table compares PetMed Express and Citi Trends’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PetMed Express | -17.34% | -91.69% | -35.15% |
| Citi Trends | 0.84% | 8.11% | 2.00% |
Earnings and Valuation
This table compares PetMed Express and Citi Trends”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PetMed Express | $179.02 million | 0.15 | -$57.29 million | ($1.38) | -0.87 |
| Citi Trends | $819.96 million | 0.51 | $5.21 million | $0.82 | 60.56 |
Citi Trends has higher revenue and earnings than PetMed Express. PetMed Express is trading at a lower price-to-earnings ratio than Citi Trends, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
PetMed Express has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Citi Trends has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500.
Summary
Citi Trends beats PetMed Express on 12 of the 13 factors compared between the two stocks.
About PetMed Express
PetMed Express, Inc., together with its subsidiaries, operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, health products, and other supplies for dogs, cats, and horses. It offers non-prescription medications and supplies, such as flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and household pet supplies; and prescription medications, including heartworm preventatives, flea and tick preventatives, arthritis, dermatitis, thyroid, diabetes, pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes. The company also sells food, beds, crates, stairs, and other pet supplies. It sells its products through its Internet website; mobile app; customer support center; and direct mail/print, which includes brochures and postcards. The company was incorporated in 1996 and is headquartered in Delray Beach, Florida.
About Citi Trends
Citi Trends, Inc. operates as a value retailer of fashion apparel, accessories, and home goods. The company offers apparel, such as fashion sportswear and footwear for men and ladies, as well as apparel for kids, including newborns, infants, toddlers, boys, and girls; sleepwear, lingerie, and scrubs for ladies; and kids uniforms and accessories. It also provides accessories and beauty products that include handbags, luggage, hats, belts, sunglasses, jewelry, and watches, as well as offers outerwear for men and women. In addition, the company offers home and lifestyle products comprising home products for the bedroom, bathroom, kitchen, and decorative accessories; and food, tech, team sports, health and products, as well as seasonal items, books, and toys. Citi Trends, Inc. provides its products primarily to African American and multicultural families in the United States. The company was formerly known as Allied Fashion, Inc. and changed its name to Citi Trends, Inc. in 2001. Citi Trends, Inc. was founded in 1946 and is headquartered in Savannah, Georgia.
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