Compagnie Financière Richemont (OTCMKTS:CFRUY) and The Home Depot (NYSE:HD) are both large-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Institutional and Insider Ownership
68.7% of The Home Depot shares are owned by institutional investors. 0.3% of The Home Depot shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Compagnie Financière Richemont and The Home Depot's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Compagnie Financière Richemont | $15.71 billion | 6.96 | $1.04 billion | $0.18 | 58.17 |
The Home Depot | $110.23 billion | 3.15 | $11.24 billion | $10.25 | 31.49 |
The Home Depot has higher revenue and earnings than Compagnie Financière Richemont. The Home Depot is trading at a lower price-to-earnings ratio than Compagnie Financière Richemont, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Compagnie Financière Richemont and The Home Depot's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Compagnie Financière Richemont | N/A | N/A | N/A |
The Home Depot | 9.94% | -910.85% | 20.80% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Compagnie Financière Richemont and The Home Depot, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Compagnie Financière Richemont | 0 | 3 | 11 | 0 | 2.79 |
The Home Depot | 0 | 6 | 23 | 0 | 2.79 |
The Home Depot has a consensus target price of $302.4333, indicating a potential downside of 6.29%. Given The Home Depot's stronger consensus rating and higher probable upside, analysts plainly believe The Home Depot is more favorable than Compagnie Financière Richemont.
Dividends
Compagnie Financière Richemont pays an annual dividend of $0.06 per share and has a dividend yield of 0.6%. The Home Depot pays an annual dividend of $6.60 per share and has a dividend yield of 2.0%. Compagnie Financière Richemont pays out 33.3% of its earnings in the form of a dividend. The Home Depot pays out 64.4% 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. The Home Depot has raised its dividend for 1 consecutive years. The Home Depot is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Compagnie Financière Richemont has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, The Home Depot has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Summary
The Home Depot beats Compagnie Financière Richemont on 12 of the 17 factors compared between the two stocks.