Critical Comparison: zooplus (OTCMKTS:ZLPSF) & Tractor Supply (NASDAQ:TSCO)

Tractor Supply (NASDAQ:TSCO) and zooplus (OTCMKTS:ZLPSF) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Valuation and Earnings

This table compares Tractor Supply and zooplus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tractor Supply	$15.52 billion	1.18	$1.10 billion	$1.92	18.16
zooplus	N/A	N/A	N/A	$0.84	238.10

Tractor Supply has higher revenue and earnings than zooplus. Tractor Supply is trading at a lower price-to-earnings ratio than zooplus, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tractor Supply and zooplus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tractor Supply	6.42%	41.74%	9.42%
zooplus	N/A	N/A	N/A

Institutional & Insider Ownership

98.7% of Tractor Supply shares are held by institutional investors. Comparatively, 21.0% of zooplus shares are held by institutional investors. 0.6% of Tractor Supply shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Tractor Supply and zooplus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tractor Supply	2	13	13	0	2.39
zooplus	0	0	0	0	0.00

Tractor Supply presently has a consensus target price of $39.31, suggesting a potential upside of 12.76%. Given Tractor Supply’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Tractor Supply is more favorable than zooplus.

Summary

Tractor Supply beats zooplus on 10 of the 11 factors compared between the two stocks.

About Tractor Supply

Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers various merchandise, including livestock and equine feed and equipment, poultry, fencing, and sprayers and chemicals; food, treats, and equipment for dogs, cats, and other small animals, as well as dog wellness products; seasonal and recreation products comprising tractors and riders, lawn and garden, bird feeding, power equipment, and other recreational products; truck, tool, and hardware products, such as truck accessories, trailers, generators, lubricants, batteries, and hardware and tools; and clothing, gift, and décor products consist of clothing, footwear, toys, snacks, and decorative merchandise. It provides its products under the 4health, Paws & Claws, American Farmworks, Producer's Pride, Bit & Bridle, Red Shed, Blue Mountain, Redstone, C.E. Schmidt, Retriever, Country Lane, Ridgecut, Countyline, Royal Wing, Country Tuff, Strive, Dumor, Traveller, Farm Table, Treeline, Groundwork, TSC Tractor Supply Co, Huskee, Untamed, and JobSmart brand names. The company operates its retail stores under the Tractor Supply Company, Petsense by Tractor Supply, and Orscheln Farm and Home names; and operates websites under the TractorSupply.com and Petsense.com names. It sells its products to recreational farmers, ranchers, and others. Tractor Supply Company was founded in 1938 and is based in Brentwood, Tennessee.

About zooplus

zooplus SE operates as an online retailer of pet products. The company offers wet and dry food, feed additives, and snacks for dogs and cats under the Concept for Life, Wolf of Wilderness, Wild Freedom, Purizon, Rocco, Cosma, Lukullus, and Feringa brands, as well as Briantos, My Star, Smilla, and Tigerino brands; and specialty articles, such as toys, scratch trees, transport baskets, grooming and care products, bedding, and other accessories. It provides approximately 8,000 food and accessory products for dogs, cats, small animals, birds, aquarium, and horses. The company sells its products in Germany and internationally. zooplus SE was incorporated in 1999 and is headquartered in Munich, Germany.