Grocery Outlet (NASDAQ:GO) & Tokyo Lifestyle (NASDAQ:TKLF) Head to Head Contrast

Tokyo Lifestyle (NASDAQ:TKLF) and Grocery Outlet (NASDAQ:GO) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Risk & Volatility

Tokyo Lifestyle has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500. Comparatively, Grocery Outlet has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Tokyo Lifestyle and Grocery Outlet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Lifestyle	0	1	0	0	2.00
Grocery Outlet	2	7	3	1	2.23

Grocery Outlet has a consensus target price of $15.73, indicating a potential upside of 29.44%. Given Grocery Outlet’s stronger consensus rating and higher probable upside, analysts plainly believe Grocery Outlet is more favorable than Tokyo Lifestyle.

Valuation and Earnings

This table compares Tokyo Lifestyle and Grocery Outlet”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokyo Lifestyle	$210.12 million	0.06	$6.64 million	N/A	N/A
Grocery Outlet	$4.57 billion	0.26	$39.47 million	($0.05)	-243.00

Grocery Outlet has higher revenue and earnings than Tokyo Lifestyle.

Institutional & Insider Ownership

99.9% of Grocery Outlet shares are owned by institutional investors. 75.4% of Tokyo Lifestyle shares are owned by company insiders. Comparatively, 4.5% of Grocery Outlet shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Tokyo Lifestyle and Grocery Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokyo Lifestyle	N/A	N/A	N/A
Grocery Outlet	-0.10%	5.86%	2.13%

Summary

Grocery Outlet beats Tokyo Lifestyle on 11 of the 13 factors compared between the two stocks.

About Tokyo Lifestyle

Yoshitsu Co., Ltd engages in the retail and wholesale of beauty, health, and other products. It offers beauty products, such as cosmetics comprising of foundation, powder, concealer, makeup remover, eyeliner, eye shadow, brow powder, brow pencil, mascara, lip gloss, lipstick, and nail polish; skin care products consisting of facial cleanser, whitening products, sun block, moisturizer, facial mask, eye mask, eye gel, and exfoliating; and cosmetic applicators, such as brush, puff, curler, hair iron, and shaver products. The company also provides body care products, such as shampoo, conditioner, and body wash; and fragrance products consisting of perfume and cologne for women and men. In addition, the company provides facial wash, firming lotion, astringent, and moisturizer products for men; and lip balm, lotion, shampoo, soap, and essence oil for children. Further, the company offers OTC drugs for the treatment of common ailments, such as colds, headaches, stomach pain, cough, and eye strains, as well as medical supplies and devices, including bandages, masks, thermometers, disinfectant sprays, eye masks, contact lens, and contact lens cleaners and solutions. Additionally, the company provides vitamins, minerals, fiber supplements, nutritional yeast, dietary products, and other nutritional supplements; bedding and bath products, and car supplies; and food, alcoholic beverages, and miscellaneous products. It directly operates physical stores in Japan and Hong Kong; online stores in Japan, China, and Korea; and franchise stores in the United States, Canada, and the United Kingdom, as well as wholesale customers in Japan, China, the United States, and Canada. The company was incorporated in 2006 and is headquartered in Tokyo, Japan.

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.