Contrasting Advantage Solutions (NASDAQ:ADV) & Chanson International (NASDAQ:CHSN)

Advantage Solutions (NASDAQ:ADV) and Chanson International (NASDAQ:CHSN) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Profitability

This table compares Advantage Solutions and Chanson International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advantage Solutions	-6.78%	-37.22%	-7.93%
Chanson International	N/A	N/A	N/A

Insider and Institutional Ownership

49.8% of Advantage Solutions shares are held by institutional investors. Comparatively, 2.8% of Chanson International shares are held by institutional investors. 9.4% of Advantage Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Advantage Solutions and Chanson International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Solutions	$3.54 billion	0.17	-$227.74 million	($18.74)	-2.35
Chanson International	$18.27 million	0.02	$190,000.00	N/A	N/A

Chanson International has lower revenue, but higher earnings than Advantage Solutions.

Risk and Volatility

Advantage Solutions has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500. Comparatively, Chanson International has a beta of -4.44, meaning that its stock price is 544% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Advantage Solutions and Chanson International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Solutions	1	2	1	0	2.00
Chanson International	1	0	0	0	1.00

Advantage Solutions presently has a consensus target price of $34.38, indicating a potential downside of 21.79%. Given Advantage Solutions’ stronger consensus rating and higher probable upside, equities analysts plainly believe Advantage Solutions is more favorable than Chanson International.

Summary

Advantage Solutions beats Chanson International on 8 of the 12 factors compared between the two stocks.

About Advantage Solutions

Advantage Solutions Inc. provides business solutions to consumer goods manufacturers and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising and in-store media services. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; retailer-centric services, such as retail experiential and private label services; and digital marketing, and digital media and advertising services. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. The company was founded in 1987 and is headquartered in Irvine, California.

About Chanson International

Chanson International Holding manufactures and sells a range of bakery products, seasonal products, and beverage products for individual and corporate customers. It offers packaged bakery products, such as cakes, bread, sweets, and snacks; birthday cakes; made-in-store pastries; mooncakes and zongzi products; and other products, including sandwiches, salads, toasts, croissants, soups, and desserts, as well as beverages and juice products. The company sells its products through a chain of bakeries, as well as digital platforms and third-party online food ordering platforms. It also offers eat-in services in its stores. The company sells its bakery and other products under the George Chanson, Patisserie Chanson, and Chanson brand names. It operates in Xinjiang in the People's Republic of China; and New York City, the United States. The company was formerly known as formerly known as RON Holding Limited and changed its name to Chanson International Holding in December 2020. The company was incorporated in 2019 and is headquartered in Urumqi, China. Chanson International Holding operates as a subsidiary of Danton Global Limited.