N Brown Group (LON:BWNG) and Card Factory (LON:CARD) are both small-cap consumer cyclical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.
Dividends
N Brown Group pays an annual dividend of GBX 0.03 per share and has a dividend yield of 0.0%. Card Factory pays an annual dividend of GBX 0.03 per share and has a dividend yield of 0.0%. N Brown Group pays out 0.3% of its earnings in the form of a dividend. Card Factory pays out 0.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. N Brown Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares N Brown Group and Card Factory's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
N Brown Group | N/A | N/A | N/A |
Card Factory | N/A | N/A | N/A |
Analyst Ratings
This is a summary of recent recommendations and price targets for N Brown Group and Card Factory, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
N Brown Group | 0 | 2 | 1 | 0 | 2.33 |
Card Factory | 0 | 4 | 1 | 0 | 2.20 |
N Brown Group presently has a consensus target price of GBX 60, suggesting a potential downside of 12.34%. Card Factory has a consensus target price of GBX 71.25, suggesting a potential downside of 11.16%. Given Card Factory's higher possible upside, analysts plainly believe Card Factory is more favorable than N Brown Group.
Earnings and Valuation
This table compares N Brown Group and Card Factory's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
N Brown Group | £782 million | 0.40 | N/A | GBX 9 | 7.61 |
Card Factory | £356.40 million | 0.77 | N/A | GBX 4.20 | 19.10 |
N Brown Group is trading at a lower price-to-earnings ratio than Card Factory, indicating that it is currently the more affordable of the two stocks.
Summary
N Brown Group beats Card Factory on 5 of the 8 factors compared between the two stocks.