Financial Analysis: Savers Value Village (NYSE:SVV) & Canadian Tire (OTCMKTS:CDNAF)

Canadian Tire (OTCMKTS:CDNAF) and Savers Value Village (NYSE:SVV) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Earnings and Valuation

This table compares Canadian Tire and Savers Value Village”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Tire	$11.68 billion	0.60	$376.67 million	$7.53	17.75
Savers Value Village	$1.74 billion	0.80	$22.64 million	$0.16	56.59

Canadian Tire has higher revenue and earnings than Savers Value Village. Canadian Tire is trading at a lower price-to-earnings ratio than Savers Value Village, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Canadian Tire and Savers Value Village, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Tire	0	4	1	0	2.20
Savers Value Village	1	4	4	0	2.33

Canadian Tire presently has a consensus price target of $205.00, suggesting a potential upside of 53.42%. Savers Value Village has a consensus price target of $13.62, suggesting a potential upside of 50.47%. Given Canadian Tire’s higher probable upside, equities analysts plainly believe Canadian Tire is more favorable than Savers Value Village.

Insider and Institutional Ownership

98.8% of Savers Value Village shares are held by institutional investors. 3.5% of Savers Value Village shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Canadian Tire and Savers Value Village’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Tire	4.09%	10.84%	3.38%
Savers Value Village	1.42%	14.58%	3.12%

Summary

Savers Value Village beats Canadian Tire on 7 of the 13 factors compared between the two stocks.

About Canadian Tire

Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. It operates in three segments: Retail, CT REIT, and Financial Services. The Retail segment retails automotive maintenance products and accessories, parts, and tires, as well as automotive services and roadside assistance; electrical, hardware, home environment, paint, plumbing, and tool products; cleaning, food & drink, home décor, home essentials, home organization, kitchen, and pet care products; camping, exercise, hockey, hunting, fishing, seasonal recreation, and team sports and golf products; and backyard living, backyard fun, cycling, gardening, outdoor tools, seasonal, and toy products. This segment offers its products under the Canadian Tire, Canadian Tire Gas, Pro Hockey Life, Mark's, PartSource, Helly Hansen, Party City, and SportChek brand names. This segment also participates in loyalty programs, as well as sells its products online. The CT REIT segment operates as a closed-end real estate investment trust that holds a portfolio of properties comprising Canadian Tire stores, Canadian Tire anchored retail developments, industrial properties, mixed-use commercial property, and development properties. The Financial Services segment provides consumer credit cards, in-store financing, insurance products, and retail and broker deposits; and savings accounts and guaranteed investment certificates. Canadian Tire Corporation, Limited was founded in 1922 and is headquartered in Toronto, Canada.

About Savers Value Village

Savers Value Village, Inc. sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Value Village Boutique, Village des Valeurs, Unique, and 2nd Avenue brands. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners and then processes, selects, prices, merchandises, and sells them in its stores. It serves retail and wholesale customers. The company was formerly known as S-Evergreen Holding LLC and changed its name to Savers Value Village, Inc. in January 2022. Savers Value Village, Inc. was founded in 1954 and is based in Bellevue, Washington.