Dover Saddlery (NASDAQ: DOVR) and Container Store (The) (NYSE:TCS) are both cyclical consumer goods & services companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Profitability

This table compares Dover Saddlery and Container Store (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dover Saddlery -3.40% -17.52% -6.75%
Container Store (The) 1.13% 5.34% 1.49%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Dover Saddlery and Container Store (The), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dover Saddlery 0 1 0 0 2.00
Container Store (The) 1 3 1 0 2.00

Container Store (The) has a consensus target price of $5.38, indicating a potential upside of 27.37%. Given Container Store (The)’s higher probable upside, analysts clearly believe Container Store (The) is more favorable than Dover Saddlery.

Institutional & Insider Ownership

79.1% of Container Store (The) shares are owned by institutional investors. 65.7% of Container Store (The) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Dover Saddlery and Container Store (The)’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dover Saddlery N/A N/A N/A N/A N/A
Container Store (The) $825.55 million 0.25 $70.50 million $0.19 22.21

Container Store (The) has higher revenue and earnings than Dover Saddlery.

Summary

Container Store (The) beats Dover Saddlery on 8 of the 8 factors compared between the two stocks.

Dover Saddlery Company Profile

Dover Saddlery, Inc. is a retailer and omni-channel marketer of equestrian products in the United States. The Company sells its products through omni-channel, including direct and retail. The Company offers a range of products required to own, ride, train and compete with a horse. The Company’s equestrian product line includes a range of separate items such as saddles, tack, specialized apparel, footwear, horse clothing, horse health and stable products. As of December 31, 2013, the Company, through its subsidiaries, operates twenty-one retail stores under the Dover Saddlery brand and one retail store under the Smith Brothers brand. It maintains two catalogs. The Dover Saddlery catalog caters to the mid to high-end, English-style, equestrian products customer. The Smith Brothers catalog is aimed at the Western-style, equestrian products customer. The Company offers web-base marketing through its Websites www.doversaddlery.com and www.smithbrothers.com.

Container Store (The) Company Profile

The Container Store Group, Inc. is a specialty retailer of storage and organization products. The Company’s segments include The Container Store (TCS), Elfa and Corporate/Other. The Company’s TCS segment consists of its retail stores, Website and call center, as well as its installation and organizational services business. The Company’s Elfa segment includes the manufacturing business that produces the elfa brand products that are sold domestically, exclusively through the TCS segment, as well as throughout Europe. Its Swedish subsidiary, Elfa International AB (Elfa), designs and manufactures component-based shelving and drawer systems and made-to-measure sliding doors. It merchandises over 11,000 products in each of its stores and online. Its stores are organized into various lifestyle departments, which include Bath, Box, Closets, Collections, Containers, Custom Closets, Food Storage, Gift Packaging, Hooks, Kitchen, Laundry, Office, Shelving, Storage, Trash and Travel.

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