Grocery Outlet (NASDAQ:GO – Get Free Report) and LQR House (NASDAQ:YHC – Get Free Report) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.
Volatility and Risk
Grocery Outlet has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, LQR House has a beta of 3.37, indicating that its share price is 237% more volatile than the S&P 500.
Valuation & Earnings
This table compares Grocery Outlet and LQR House”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grocery Outlet | $4.69 billion | 0.25 | -$224.91 million | ($3.87) | -3.01 |
| LQR House | $1.57 million | 1.14 | -$25.52 million | ($25.46) | -0.05 |
LQR House has lower revenue, but higher earnings than Grocery Outlet. Grocery Outlet is trading at a lower price-to-earnings ratio than LQR House, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Grocery Outlet and LQR House’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grocery Outlet | -8.04% | 5.84% | 1.79% |
| LQR House | -1,588.72% | -14.06% | -10.42% |
Insider & Institutional Ownership
99.9% of Grocery Outlet shares are owned by institutional investors. 5.6% of Grocery Outlet shares are owned by company insiders. Comparatively, 9.4% of LQR House shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations for Grocery Outlet and LQR House, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grocery Outlet | 2 | 12 | 0 | 0 | 1.86 |
| LQR House | 1 | 0 | 0 | 0 | 1.00 |
Grocery Outlet currently has a consensus target price of $10.59, suggesting a potential downside of 9.17%. Given Grocery Outlet’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Grocery Outlet is more favorable than LQR House.
Summary
Grocery Outlet beats LQR House on 8 of the 13 factors compared between the two stocks.
About Grocery Outlet
Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.
About LQR House
LQR House, Inc. provides digital marketing and brand development for alcoholic beverage space. It intends to integrate the supply, sales, and marketing facets of the alcoholic beverage space into one easy to use platform and become the one-stop-shop for everything related to alcohol. The company was founded on January 11, 2021 and is headquartered in Miami Beach, FL.
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