Critical Survey: Redcare Pharmacy (OTCMKTS:SAEYY) and Grocery Outlet (NASDAQ:GO)

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

Insider & Institutional Ownership

99.9% of Grocery Outlet shares are held by institutional investors. 5.6% of Grocery Outlet shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

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

Earnings and Valuation

This table compares Grocery Outlet and Redcare Pharmacy”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	$4.74 billion	0.24	-$224.91 million	($3.87)	-3.01
Redcare Pharmacy	N/A	N/A	N/A	N/A	N/A

Redcare Pharmacy has lower revenue, but higher earnings than Grocery Outlet.

Analyst Ratings

This is a breakdown of current recommendations for Grocery Outlet and Redcare Pharmacy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grocery Outlet	2	12	0	0	1.86
Redcare Pharmacy	0	0	2	0	3.00

Grocery Outlet presently has a consensus target price of $10.59, indicating a potential downside of 9.00%. Given Grocery Outlet’s higher probable upside, equities research analysts plainly believe Grocery Outlet is more favorable than Redcare Pharmacy.

Summary

Grocery Outlet beats Redcare Pharmacy on 6 of the 9 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 Redcare Pharmacy

Redcare Pharmacy NV operates in online pharmacy business in the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France. It provides prescription and non-prescription over-the-counter pharmaceuticals, beauty and personal care products, and food supplements. The company was formerly known as Shop Apotheke Europe N.V. and changed its name to Redcare Pharmacy NV in June 2023. Redcare Pharmacy NV was founded in 2001 and is headquartered in Sevenum, the Netherlands.