Roots Co. (ROOT.TO) (TSE:ROOT) and GreenPower Motor (CVE:GPV) are both small-cap consumer cyclical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.
Earnings and Valuation
This table compares Roots Co. (ROOT.TO) and GreenPower Motor's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Roots Co. (ROOT.TO) | C$268.56 million | 0.44 | C$-43,886,024.00 | C($1.04) | -2.67 |
| GreenPower Motor | C$8.15 million | 72.23 | C$-8,866,338.00 | C($0.43) | -66.38 |
GreenPower Motor has lower revenue, but higher earnings than Roots Co. (ROOT.TO). GreenPower Motor is trading at a lower price-to-earnings ratio than Roots Co. (ROOT.TO), indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Roots Co. (ROOT.TO) and GreenPower Motor's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Roots Co. (ROOT.TO) | N/A | N/A | N/A |
| GreenPower Motor | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Roots Co. (ROOT.TO) and GreenPower Motor, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Roots Co. (ROOT.TO) | 0 | 3 | 1 | 0 | 2.25 |
| GreenPower Motor | 0 | 0 | 1 | 0 | 3.00 |
Roots Co. (ROOT.TO) currently has a consensus price target of C$2.59, indicating a potential downside of 6.70%. Given Roots Co. (ROOT.TO)'s higher probable upside, equities analysts plainly believe Roots Co. (ROOT.TO) is more favorable than GreenPower Motor.
Summary
GreenPower Motor beats Roots Co. (ROOT.TO) on 4 of the 7 factors compared between the two stocks.
