Critical Analysis: Edgewell Personal Care (NYSE:EPC) and Big Tree Cloud (NASDAQ:DSY)

Edgewell Personal Care (NYSE:EPC) and Big Tree Cloud (NASDAQ:DSY) are both small-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

This table compares Edgewell Personal Care and Big Tree Cloud’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Edgewell Personal Care	-3.69%	6.31%	2.57%
Big Tree Cloud	N/A	N/A	N/A

Risk and Volatility

Edgewell Personal Care has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, Big Tree Cloud has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Edgewell Personal Care and Big Tree Cloud, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Edgewell Personal Care	1	4	3	0	2.25
Big Tree Cloud	1	0	0	0	1.00

Edgewell Personal Care currently has a consensus target price of $25.83, indicating a potential downside of 2.88%. Given Edgewell Personal Care’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Edgewell Personal Care is more favorable than Big Tree Cloud.

Institutional & Insider Ownership

91.9% of Edgewell Personal Care shares are held by institutional investors. Comparatively, 60.2% of Big Tree Cloud shares are held by institutional investors. 3.0% of Edgewell Personal Care shares are held by insiders. Comparatively, 34.1% of Big Tree Cloud shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Edgewell Personal Care and Big Tree Cloud”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Edgewell Personal Care	$2.22 billion	0.55	$25.40 million	($1.67)	-15.93
Big Tree Cloud	$2.56 million	7.31	-$32.53 million	N/A	N/A

Edgewell Personal Care has higher revenue and earnings than Big Tree Cloud.

Summary

Edgewell Personal Care beats Big Tree Cloud on 8 of the 12 factors compared between the two stocks.

About Edgewell Personal Care

Edgewell Personal Care Company is a manufacturer and marketer of personal care products in the wet shave, sun and skin care, feminine care and infant care categories. As of September 30, 2016, the Company had a portfolio of over 25 brands. It manages its business in four segments: Wet Shave, Sun and Skin Care, Feminine Care and All Other. Its Wet shave products are sold under the Schick, Wilkinson Sword, Edge, Skintimate, Shave Guard and Personna brand names. Its Sun and Skin Care products are sold under the Banana Boat, Hawaiian Tropic, Wet Ones and Playtex brand names and offers Wet Ones, portable hand wipes category, and Playtex household gloves, the branded household glove in the United States. Its Feminine Care segment markets its products under the Playtex, Stayfree, Carefree and o.b. brands and markets pads and liners. Its All Other segment includes infant care, pet care and miscellaneous other products.

About Big Tree Cloud

Big Tree Cloud Holdings Limited manufactures and sells personal care products and other consumer goods. The company is based in Shenzhen, China. Big Tree Cloud Holdings Limited operates as a subsidiary of Ploutos Group Limited.