Financial Comparison: Canadian Tire (OTCMKTS:CDNAF) versus Frasers Group (OTCMKTS:SDIPF)

Canadian Tire (OTCMKTS:CDNAF) and Frasers Group (OTCMKTS:SDIPF) are both consumer cyclical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Valuation and Earnings

This table compares Canadian Tire and Frasers Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Tire	$11.68 billion	0.62	$376.67 million	$4.68	29.47
Frasers Group	N/A	N/A	N/A	$0.30	29.90

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

Insider and Institutional Ownership

22.5% of Frasers Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Canadian Tire and Frasers Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Tire	0	5	1	0	2.17
Frasers Group	1	0	0	0	1.00

Canadian Tire currently has a consensus target price of $205.00, indicating a potential upside of 48.62%. Given Canadian Tire’s stronger consensus rating and higher possible upside, analysts clearly believe Canadian Tire is more favorable than Frasers Group.

Profitability

This table compares Canadian Tire and Frasers Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Tire	3.63%	10.63%	3.34%
Frasers Group	N/A	N/A	N/A

Summary

Canadian Tire beats Frasers Group on 8 of the 10 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 Frasers Group

Frasers Group Plc, together with its subsidiaries, retails sports and leisure clothing, footwear, equipment, accessories, and apparel through department stores, shops, and online in the United Kingdom, Europe, the United States, Asia, Oceania, and internationally. The company operates through four segments: UK Sports Retail, Premium Lifestyle, International Retail, and Wholesale & Licensing. It is also involved in the wholesale distribution and sale of sports and leisure clothing, footwear, equipment, and apparel; and licensing activities. The company offers its products under its own and third party brands, which include Slazenger, Everlast, Lonsdale, Karrimor, 18montrose, Evans Cycles, Flannels, Frasers, Game, House of Fraser, Jack Wills, Sofa.com, Sports Direct, USC, Cruise, and van mildert. The company was formerly known as Sports Direct International plc and changed its name to Frasers Group Plc in December 2019. Frasers Group Plc was founded in 1982 and is headquartered in Shirebrook, the United Kingdom. Frasers Group plc operates as a subsidiary of MASH Holdings Limited.