Critical Review: Grocery Outlet (NASDAQ:GO) vs. WeBuy Global (NASDAQ:WBUY)

WeBuy Global (NASDAQ:WBUY) and Grocery Outlet (NASDAQ:GO) are both small-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Risk and Volatility

WeBuy Global has a beta of 2.91, suggesting that its share price is 191% more volatile than the S&P 500. Comparatively, Grocery Outlet has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for WeBuy Global and Grocery Outlet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WeBuy Global	1	0	0	0	1.00
Grocery Outlet	2	12	0	0	1.86

Grocery Outlet has a consensus target price of $10.59, indicating a potential downside of 12.54%. Given Grocery Outlet’s stronger consensus rating and higher possible upside, analysts clearly believe Grocery Outlet is more favorable than WeBuy Global.

Insider & Institutional Ownership

0.3% of WeBuy Global shares are owned by institutional investors. Comparatively, 99.9% of Grocery Outlet shares are owned by institutional investors. 5.6% of Grocery Outlet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WeBuy Global	$18.83 million	0.29	-$8.53 million	N/A	N/A
Grocery Outlet	$4.69 billion	0.26	-$224.91 million	($3.87)	-3.13

WeBuy Global has higher earnings, but lower revenue than Grocery Outlet.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WeBuy Global	N/A	N/A	N/A
Grocery Outlet	-8.04%	5.84%	1.79%

Summary

Grocery Outlet beats WeBuy Global on 7 of the 11 factors compared between the two stocks.

About WeBuy Global

Webuy Global Ltd operates as an e-commerce retailer company in Singapore, Indonesia, and Malaysia. The company sells food and beverages, fresh produces, lifestyle daily essential items, e-vouchers, miscellaneous daily needs products, and other personal care products, as well as sells packaged tours. Webuy Global Ltd was founded in 2019 and is based in Singapore.

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.