Contrasting Nestle (OTCMKTS:NSRGY) and Big Tree Cloud (NASDAQ:DSY)

Big Tree Cloud (NASDAQ:DSY) and Nestle (OTCMKTS:NSRGY) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Profitability

This table compares Big Tree Cloud and Nestle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Big Tree Cloud	N/A	N/A	N/A
Nestle	N/A	N/A	N/A

Valuation & Earnings

This table compares Big Tree Cloud and Nestle”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Big Tree Cloud	$2.56 million	10.32	-$32.53 million	N/A	N/A
Nestle	$103.78 billion	2.47	$12.36 billion	N/A	N/A

Nestle has higher revenue and earnings than Big Tree Cloud.

Volatility & Risk

Big Tree Cloud has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Nestle has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Big Tree Cloud and Nestle, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Big Tree Cloud	1	0	0	0	1.00
Nestle	1	3	1	0	2.00

Nestle has a consensus target price of $91.00, indicating a potential downside of 8.48%. Given Nestle’s stronger consensus rating and higher probable upside, analysts plainly believe Nestle is more favorable than Big Tree Cloud.

Institutional and Insider Ownership

60.2% of Big Tree Cloud shares are owned by institutional investors. Comparatively, 0.6% of Nestle shares are owned by institutional investors. 34.1% of Big Tree Cloud shares are owned 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

Nestle beats Big Tree Cloud on 5 of the 9 factors compared between the two stocks.

About Big Tree Cloud

Big Tree Cloud Holdings Limited manufactures and sells personal care products and other consumer goods. The company is based in Shenzhen, China. Big Tree Cloud Holdings Limited operates as a subsidiary of Ploutos Group Limited.

About Nestle

Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone North America; Zone Europe; Zone Asia, Oceania, and Africa; Zone Latin America; Zone Greater China; Nespresso; and Nestlé Health Science segments. It offers baby foods under the Cerelac, Gerber, Nido, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, Vittel, Buxton, Erikli, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Smarties, Aero, Nestlé Les Recettes de l'Atelier, Milkybar, Baci Perugina, Quality Street, and Fitness brands. The company provides coffee products under the Nescafé, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, and Blue Bottle Coffee brands; culinary, chilled, and frozen foods under the Maggi, DiGiorno, Thomy, Garden Gourmet, Sweet Earth, Hot Pockets, Stouffer's, Buitoni, Lean, and Life Cuisine brands; dairy products under the Carnation, Nido, Bear, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, Nescafé, and Milo brands. In addition, it offers food service products under the Milo, Nescafé, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Minor's, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Garden of Life, Nature's Bounty, Persona, Vital Proteins, Solgar, Peptamen, Resource, Vitaflo, Impact, and Compleat brands; ice cream products under the Movenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland.