WH Smith (LON:SMWH) and Dunelm Group (LON:DNLM) are both mid-cap consumer cyclical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.
Profitability
This table compares WH Smith and Dunelm Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
WH Smith | N/A | N/A | N/A |
Dunelm Group | N/A | N/A | N/A |
Analyst Recommendations
This is a summary of recent recommendations and price targets for WH Smith and Dunelm Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
WH Smith | 0 | 2 | 3 | 0 | 2.60 |
Dunelm Group | 2 | 3 | 2 | 0 | 2.00 |
WH Smith presently has a consensus price target of GBX 1,608.25, indicating a potential downside of 13.53%. Dunelm Group has a consensus price target of GBX 1,168, indicating a potential downside of 19.28%. Given WH Smith's stronger consensus rating and higher probable upside, equities research analysts clearly believe WH Smith is more favorable than Dunelm Group.
Earnings and Valuation
This table compares WH Smith and Dunelm Group's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
WH Smith | £1.02 billion | 2.38 | N/A | GBX (199.20) | -9.34 |
Dunelm Group | £1.19 billion | 2.46 | N/A | GBX 53.80 | 26.90 |
WH Smith is trading at a lower price-to-earnings ratio than Dunelm Group, indicating that it is currently the more affordable of the two stocks.
Summary
Dunelm Group beats WH Smith on 4 of the 7 factors compared between the two stocks.