Critical Survey: Grocery Outlet (NASDAQ:GO) versus Fenbo (NASDAQ:FEBO)

Grocery Outlet (NASDAQ:GO) and Fenbo (NASDAQ:FEBO) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current ratings for Grocery Outlet and Fenbo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grocery Outlet	2	11	0	0	1.85
Fenbo	1	0	0	0	1.00

Grocery Outlet currently has a consensus target price of $10.68, suggesting a potential upside of 34.19%. Given Grocery Outlet’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Grocery Outlet is more favorable than Fenbo.

Institutional and Insider Ownership

99.9% of Grocery Outlet shares are held by institutional investors. Comparatively, 0.0% of Fenbo shares are held by institutional investors. 4.5% of Grocery Outlet shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Grocery Outlet and Fenbo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grocery Outlet	-4.80%	5.93%	2.07%
Fenbo	N/A	N/A	N/A

Risk & Volatility

Grocery Outlet has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Fenbo has a beta of -1.43, suggesting that its stock price is 243% less volatile than the S&P 500.

Valuation and Earnings

This table compares Grocery Outlet and Fenbo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grocery Outlet	$4.69 billion	0.17	-$224.91 million	($2.29)	-3.48
Fenbo	$108.72 million	0.11	-$1.99 million	N/A	N/A

Fenbo has lower revenue, but higher earnings than Grocery Outlet.

Summary

Grocery Outlet beats Fenbo on 9 of the 11 factors compared between the two stocks.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.

About Fenbo

Fenbo Holdings Limited, through its subsidiaries, manufactures and sells personal care electric appliances and toys products. The company offers curling wands and irons, flat irons and hair straighteners, hair dryers, trimmers, nail polishers, pet shampoo brushes, eyebrow pliers, etc. It serves customers in Europe, North America, South America, Asia, and internationally. The company was founded in 1993 and is headquartered in Kwun Tong, Hong Kong. Fenbo Holdings Limited operates as a subsidiary of Luxury Max Investments Limited.