Conn’s (NASDAQ:CONN) and GOME ELECTRICAL/ADR (OTCMKTS:GMELY) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.
This table compares Conn’s and GOME ELECTRICAL/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings for Conn’s and GOME ELECTRICAL/ADR, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Conn’s currently has a consensus price target of $42.75, suggesting a potential upside of 46.81%. Given Conn’s’ higher probable upside, analysts plainly believe Conn’s is more favorable than GOME ELECTRICAL/ADR.
Earnings & Valuation
This table compares Conn’s and GOME ELECTRICAL/ADR’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Conn’s||$1.52 billion||0.61||$6.46 million||$0.95||30.65|
|GOME ELECTRICAL/ADR||$10.59 billion||0.20||-$66.58 million||N/A||N/A|
Conn’s has higher earnings, but lower revenue than GOME ELECTRICAL/ADR.
Institutional and Insider Ownership
67.7% of Conn’s shares are held by institutional investors. 3.3% of Conn’s shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Conn’s has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, GOME ELECTRICAL/ADR has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.
Conn’s beats GOME ELECTRICAL/ADR on 10 of the 11 factors compared between the two stocks.
Conn's, Inc. operates as a specialty retailer of durable consumer goods and related services in the United States. The company operates through two segments, Retail and Credit. Its stores provide furniture and mattress, including furniture and related accessories for the living room, dining room, and bedroom, as well as traditional and specialty mattresses; home appliances, such as refrigerators, freezers, washers, dryers, dishwashers, and ranges; consumer electronics comprising televisions, Blu-ray players, home theaters, and portable audio equipment; and home office products consisting of computers, printers, and accessories. The company also provides short- and medium-term financing to its retail customers; and product support services, such as next-day delivery and installation services, credit insurance products, product repair services, and repair service agreements. As of September 4, 2018, it operated 119 HomePlus retail locations in Alabama, Arizona, Colorado, Georgia, Louisiana, Mississippi, Nevada, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, and Virginia. Conn's, Inc. was founded in 1890 and is headquartered in The Woodlands, Texas.
About GOME ELECTRICAL/ADR
GOME Retail Holdings Limited, together with its subsidiaries, engages in the retail of home appliances and consumer electronic products in the People's Republic of China. The company is also involved in the provision of logistics and procurement, storage and delivery, IT development, and business management services; retailing of mobile phones and accessories; and online retail of electrical appliances and consumer electronic products, as well as in property holding activities. In addition, it engages in the trading of wine products. The company also sells its products through Internet retail platforms. As of December 31, 2017, it operated 1,604 stores in 425 cities. The company was formerly known as GOME Electrical Appliances Holding Limited and changed its name to GOME Retail Holdings Limited in August 2017. GOME Retail Holdings Limited was founded in 1987 and is headquartered in Central, Hong Kong.
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