Critical Survey: Gaia (GAIA) vs. Cabela’s (CAB)
Cabela’s (NYSE: CAB) and Gaia (NASDAQ:GAIA) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitabiliy, analyst recommendations, valuation, earnings, risk and dividends.
Risk and Volatility
Cabela’s has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500. Comparatively, Gaia has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.
This is a summary of current ratings and price targets for Cabela’s and Gaia, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cabela’s currently has a consensus price target of $59.36, indicating a potential upside of 3.43%. Gaia has a consensus price target of $17.00, indicating a potential upside of 53.15%. Given Gaia’s stronger consensus rating and higher possible upside, analysts clearly believe Gaia is more favorable than Cabela’s.
Valuation and Earnings
This table compares Cabela’s and Gaia’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cabela’s||$4.10 billion||0.96||$468.84 million||$2.08||27.59|
|Gaia||$19.20 million||8.76||-$15.54 million||$5.91||1.88|
Cabela’s has higher revenue and earnings than Gaia. Gaia is trading at a lower price-to-earnings ratio than Cabela’s, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
58.3% of Cabela’s shares are owned by institutional investors. Comparatively, 31.2% of Gaia shares are owned by institutional investors. 21.0% of Cabela’s shares are owned by insiders. Comparatively, 42.8% of Gaia shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Cabela’s and Gaia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Cabela’s Company Profile
Cabela’s Incorporated is an omni-channel retailer of hunting, fishing, camping, shooting sports and related outdoor merchandise. The Company offers its customers a selection of national and regional brand products, including its Cabela’s brand. The Company’s segments include Merchandising and Financial Services. The Merchandising segment sells products and services through the Company’s retail stores, its e-commerce Websites (Cabelas.com and Cabelas.ca), and its catalogs. The United States merchandising and Canada merchandising operating segments have been aggregated into its Merchandising segment. The Financial Services segment issues co-branded credit cards, which are available through all of its channels. The Company’s product assortment includes merchandise and equipment for hunting, fishing, marine use, camping, and recreational sport shooting, along with casual and outdoor apparel and footwear, optics, vehicle accessories, and gifts and home furnishings with an outdoor theme.
Gaia Company Profile
Gaia, Inc., formerly Gaiam, Inc., is engaged in providing global digital video subscription service. The Company is a global digital video streaming service and online community delivering curated media to its subscribers in over 120 countries. It provides its members access to approximately 7,000 video titles. Its video content is available to its subscribers through online digital streaming on virtually any Internet-connected device on a commercial-free basis. In addition to streaming, the Company’s subscribers can download its video content to their devices, so they can view its content without being actively connected to the Internet. Through the Gaia service, the Company’s subscribers have access to a library of inspiring films, personal growth-related content, documentaries, interviews, yoga classes and fitness. The Company has also created a fitness and yoga-focused version of its video service. The Company also operates a digital versatile disc (DVD) subscription club.
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