Head-To-Head Comparison: Currys (OTCMKTS:DSITF) and Canadian Tire (OTCMKTS:CDNAF)

Canadian Tire (OTCMKTS:CDNAF) and Currys (OTCMKTS:DSITF) are both consumer cyclical companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Canadian Tire and Currys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Tire	3.24%	9.79%	3.06%
Currys	N/A	N/A	N/A

Insider & Institutional Ownership

52.5% of Currys shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Canadian Tire and Currys”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Tire	$11.68 billion	0.59	$376.67 million	$3.21	40.56
Currys	N/A	N/A	N/A	($0.02)	-84.21

Canadian Tire has higher revenue and earnings than Currys. Currys is trading at a lower price-to-earnings ratio than Canadian Tire, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Canadian Tire and Currys, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Tire	0	5	0	0	2.00
Currys	0	0	3	0	3.00

Canadian Tire presently has a consensus target price of $205.00, suggesting a potential upside of 57.46%. Given Canadian Tire’s higher possible upside, research analysts clearly believe Canadian Tire is more favorable than Currys.

Summary

Canadian Tire beats Currys on 7 of the 10 factors compared between the two stocks.

About Canadian Tire

Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. It operates in three segments: Retail, CT REIT, and Financial Services. The Retail segment retails automotive maintenance products and accessories, parts, and tires, as well as automotive services and roadside assistance; electrical, hardware, home environment, paint, plumbing, and tool products; cleaning, food & drink, home décor, home essentials, home organization, kitchen, and pet care products; camping, exercise, hockey, hunting, fishing, seasonal recreation, and team sports and golf products; and backyard living, backyard fun, cycling, gardening, outdoor tools, seasonal, and toy products. This segment offers its products under the Canadian Tire, Canadian Tire Gas, Pro Hockey Life, Mark's, PartSource, Helly Hansen, Party City, and SportChek brand names. This segment also participates in loyalty programs, as well as sells its products online. The CT REIT segment operates as a closed-end real estate investment trust that holds a portfolio of properties comprising Canadian Tire stores, Canadian Tire anchored retail developments, industrial properties, mixed-use commercial property, and development properties. The Financial Services segment provides consumer credit cards, in-store financing, insurance products, and retail and broker deposits; and savings accounts and guaranteed investment certificates. Canadian Tire Corporation, Limited was founded in 1922 and is headquartered in Toronto, Canada.

About Currys

Currys plc operates as a omnichannel retailer of technology products and services in the United Kingdom, Ireland, Norway, Sweden, Finland, Denmark, Iceland, Greenland, and the Faroe Islands. The company offers consumer electronics and mobile technology products and services; iD Mobile, a mobile virtual network operator solution; and provides consumer electrical repair and insurance services. It sells its products through franchise and own stores operated under Currys and Elkjøp brand names, as well as through online channels. The company was formerly known as Dixons Carphone plc and changed its name to Currys plc in September 2021. Currys plc was founded in 1884 and is based in London, the United Kingdom.