Core-Mark (NASDAQ:CORE) and DTS8 Coffee (OTCMKTS:BKCT) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Dividends

Core-Mark pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. DTS8 Coffee does not pay a dividend. Core-Mark pays out 40.0% of its earnings in the form of a dividend. Core-Mark has raised its dividend for 4 consecutive years.

Profitability

This table compares Core-Mark and DTS8 Coffee’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Core-Mark 0.27% 11.58% 3.81%
DTS8 Coffee N/A N/A N/A

Valuation & Earnings

This table compares Core-Mark and DTS8 Coffee’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Core-Mark $15.69 billion 0.08 $33.50 million $1.00 27.74
DTS8 Coffee $310,000.00 1.34 N/A N/A N/A

Core-Mark has higher revenue and earnings than DTS8 Coffee.

Volatility and Risk

Core-Mark has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, DTS8 Coffee has a beta of -0.77, meaning that its share price is 177% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Core-Mark and DTS8 Coffee, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Core-Mark 0 3 4 1 2.75
DTS8 Coffee 0 0 0 0 N/A

Core-Mark currently has a consensus target price of $33.60, indicating a potential upside of 21.12%. Given Core-Mark’s higher possible upside, research analysts clearly believe Core-Mark is more favorable than DTS8 Coffee.

Insider & Institutional Ownership

93.2% of Core-Mark shares are held by institutional investors. 2.0% of Core-Mark shares are held by company insiders. Comparatively, 26.6% of DTS8 Coffee shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Core-Mark beats DTS8 Coffee on 11 of the 14 factors compared between the two stocks.

Core-Mark Company Profile

Core-Mark Holding Company, Inc. markets fresh and broad-line supply solutions to the convenience retail industry. The company sells and distributes various food/non-food products, including cigarettes, fast food, candies, snacks, groceries, fresh products, dairy products, breads, beverages, other tobacco products, general merchandise and equipment, and health and beauty care products. Its customers include traditional convenience stores, such as national and super-regional convenience store operators, as well as independently owned convenience stores; and alternative outlets, which include grocery stores, drug stores, big box or supercenter stores, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college and corporate campuses, casinos, hardware stores, airport concessions, and other specialty and small format stores that carry convenience products. The company offers its products to 45,000 customer locations through a network of distribution centers in the United States and Canada. Core-Mark Holding Company, Inc. was founded in 1888 and is headquartered in South San Francisco, California.

DTS8 Coffee Company Profile

DTS8 Coffee Company, Ltd., through its subsidiaries, engages in the roasting, marketing, and sale of gourmet roasted coffee in Shanghai and other parts of China. It markets and sells its coffee under the DTS8 Coffee, Don Manuel, and private label brands through distribution channels that serve consumers at restaurants, multi-location coffee shops, and offices. The company was formerly known as Berkeley Coffee & Tea, Inc. and changed its name to DTS8 Coffee Company, Ltd. in January 2013. DTS8 Coffee Company, Ltd. was founded in 2009 and is based in Jiangqiao, China.

Receive News & Ratings for Core-Mark Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Core-Mark and related companies with MarketBeat.com's FREE daily email newsletter.