Rover Group (NASDAQ: ROVR – Get a rating) and European Wax Center (NASDAQ:EWCZ – Get a rating) are both small cap retail/wholesale companies, but which is the better company? We’ll compare the two companies based on earnings strength, risk, dividends, institutional ownership, profitability, valuation, and analyst recommendations.
This table compares the net margins, return on equity and return on assets of Rover Group and European Wax Center.
|Net margins||Return on equity||return on assets|
|European Wax Center||3.31%||9.60%||5.30%|
Institutional and Insider Ownership
78.8% of Rover Group shares are held by institutional investors. In comparison, 69.4% of European Wax Center shares are held by institutional investors. Strong institutional ownership indicates that hedge funds, large money managers, and endowments believe a company is poised for long-term growth.
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of Rover Group and European Wax Center.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Rover Group||$109.84 million||8.99||-$64.05 million||($1.22)||-4.49|
|European Wax Center||$178.68 million||9:20 a.m.||-$3.41 million||$0.12||215.92|
European Wax Center has higher revenue and profit than Rover Group. Rover Group trades at a lower price-to-earnings ratio than European Wax Center, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent valuations and price targets for Rover Group and European Wax Center, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|European Wax Center||0||2||6||0||2.75|
Rover Group currently has a consensus price target of $10.17, indicating a potential upside of 85.52%. European Wax Center has a consensus price target of $31.29, indicating a potential upside of 20.75%. Given Rover Group’s stronger consensus rating and likely higher upside, equity research analysts clearly believe Rover Group is more favorable than the European wax hub.
European Wax Center beats Rover Group on 9 of the 12 factors compared between the two stocks.
About Rover Group (Get a rating)
Rover Group, Inc. operates an online marketplace for pet care worldwide. It connects pet owners with pet providers who offer overnight services, including boarding and in-home pet sitting, as well as daytime services, such as dog daycare, dog walking, walk-ins, grooming and training. The company is headquartered in Seattle, Washington.
About the European Wax Center (Get a rating)
European Wax Center, Inc. operates as a holding company for EWC Ventures, LLC which franchises and operates out-of-home waxing services in the United States. The company sells facial and body hair removal products to franchisees. She offers Brazilian, body, brow, facial hair and quick hair removal services, as well as men’s related services; and laser hair removal, sugaring and threading services, as well as home solutions, such as shaving, chemical creams, epilators, home laser hair removal and hair removal wax at home. The Company also provides pre- and post-service products, including ingrown hair serums, exfoliating gels, eyebrow shapers and skin treatments, as well as distributes retail products to its franchisees for sale in centers and sells directly to consumers through the website. . As of December 25, 2021, it had a portfolio of centers operating at 853 sites, of which 848 are franchise centers and five directly owned centers. European Wax Center, Inc. was founded in 2004 and is headquartered in Plano, Texas.
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