Analyzing Hour Loop (NASDAQ:HOUR) & iPower (NASDAQ:IPW)

iPower (NASDAQ:IPW) and Hour Loop (NASDAQ:HOUR) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations for iPower and Hour Loop, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iPower	1	0	0	0	1.00
Hour Loop	0	1	0	0	2.00

Profitability

This table compares iPower and Hour Loop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iPower	-23.43%	-26.96%	-14.85%
Hour Loop	1.14%	22.31%	6.60%

Valuation & Earnings

This table compares iPower and Hour Loop”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iPower	$32.02 million	0.05	-$4.97 million	($480.49)	-0.00
Hour Loop	$153.37 million	0.41	$1.71 million	$0.04	44.35

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

Volatility and Risk

iPower has a beta of 2.92, indicating that its share price is 192% more volatile than the S&P 500. Comparatively, Hour Loop has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Institutional and Insider Ownership

2.7% of iPower shares are held by institutional investors. Comparatively, 0.3% of Hour Loop shares are held by institutional investors. 0.7% of iPower shares are held by insiders. Comparatively, 95.0% of Hour Loop shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Hour Loop beats iPower on 10 of the 12 factors compared between the two stocks.

About iPower

iPower Inc. operates as an online retailer and supplier of consumer home, garden, and pet products for commercial businesses and individuals in the United States. The company offers grow light systems; advanced heating, ventilation, and air conditioning systems; water pumps, heaters, chillers, and filters; nutrient and fertilizer delivery systems; and various growing media products. It also provides general gardening products, including environmental sensors and controls; and home products, which comprise commercial fans, floor and wall fans, storage and shelving units, and chairs. The company sells its products under the iPower and Simple Deluxe brand names through zenhydro.com, simpledeluxe.com, and various third-party online platforms. The company was formerly known as BZRTH Inc. and changed its name to iPower Inc. in September 2020. iPower Inc. was incorporated in 2018 and is based in Rancho Cucamonga, California.

About Hour Loop

Hour Loop, Inc., an online retailer, engages in e-commerce retailing in the United States. The company sells products in various categories, including home/garden décor, toys, kitchenware, apparels, and electronics products. It sells its products through hourloop.com, as well as third-party marketplaces. Hour Loop, Inc. was founded in 2013 and is headquartered in Redmond, Washington.