Dover Saddlery (NASDAQ: DOVR) and Party City Holdco (NYSE:PRTY) are both small-cap cyclical consumer goods & services companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Risk & Volatility

Dover Saddlery has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, Party City Holdco has a beta of 2.71, suggesting that its share price is 171% more volatile than the S&P 500.

Profitability

This table compares Dover Saddlery and Party City Holdco’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%
Party City Holdco 4.96% 13.74% 4.12%

Valuation and Earnings

This table compares Dover Saddlery and Party City Holdco’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dover Saddlery N/A N/A N/A $0.13 64.85
Party City Holdco $2.28 billion 0.64 $117.47 million $0.96 12.71

Party City Holdco has higher revenue and earnings than Dover Saddlery. Party City Holdco is trading at a lower price-to-earnings ratio than Dover Saddlery, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Dover Saddlery and Party City Holdco, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dover Saddlery 0 0 0 0 N/A
Party City Holdco 0 1 4 0 2.80

Party City Holdco has a consensus target price of $15.75, suggesting a potential upside of 29.10%. Given Party City Holdco’s higher possible upside, analysts clearly believe Party City Holdco is more favorable than Dover Saddlery.

Summary

Party City Holdco 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.

Party City Holdco Company Profile

Party City Holdco Inc. is a holding company with no operating assets or operations. As of December 31, 2016, the Company owned PC Nextco Holdings, LLC (PC Nextco), which owned PC Intermediate Holdings, Inc. (PC Intermediate). As of December 31, 2016, PC Intermediate owned Party City Holdings Inc. (PCHI). PCHI or its direct or indirect subsidiaries conduct all of its operating businesses. The Company operates through two segments: Retail and Wholesale. Its retail operations generate revenue primarily through the sale of its Amscan, Designware, Anagram and Costumes USA party supplies through its Party City stores, Halloween City stores and PartyCity.com. Its wholesale revenues are generated from the sale of party goods for all occasions, including paper and plastic tableware, accessories and novelties, costumes, metallic and latex balloons and stationery.

Receive News & Ratings for Dover Saddlery Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dover Saddlery and related companies with MarketBeat.com's FREE daily email newsletter.