Citi Trends (NASDAQ:CTRN) & BARK (NYSE:BARK) Critical Review

BARK (NYSE:BARK) and Citi Trends (NASDAQ:CTRN) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Institutional & Insider Ownership

28.8% of BARK shares are owned by institutional investors. 14.8% of BARK shares are owned by insiders. Comparatively, 9.6% of Citi Trends shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares BARK and Citi Trends”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BARK	$394.84 million	0.22	-$39.01 million	($2.81)	-3.36
Citi Trends	$819.96 million	0.46	$5.21 million	$0.82	55.30

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

Risk and Volatility

BARK has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500. Comparatively, Citi Trends has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for BARK and Citi Trends, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BARK	1	2	2	0	2.20
Citi Trends	1	0	2	0	2.33

BARK currently has a consensus target price of $15.33, indicating a potential upside of 62.26%. Citi Trends has a consensus target price of $81.00, indicating a potential upside of 78.61%. Given Citi Trends’ stronger consensus rating and higher possible upside, analysts plainly believe Citi Trends is more favorable than BARK.

Profitability

This table compares BARK and Citi Trends’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BARK	-8.42%	-35.66%	-14.54%
Citi Trends	0.84%	8.11%	2.00%

Summary

Citi Trends beats BARK on 10 of the 13 factors compared between the two stocks.

About BARK

BARK, Inc. is a New York-based company focused on developing products, services and experiences for dogs and their owners. The company operates a digitally led, omnichannel business that combines subscription offerings, e-commerce and retail distribution. Its brands and products include BARKBox, a subscription service offering themed boxes of toys and treats; Super Chewer, which provides more durable toys and treats; and BARK Bright, an oral-care line for dogs. BARK also sells toys, treats, food, beds, apparel and other dog-related products through its website, retail partners and other channels.

About Citi Trends

Citi Trends, Inc. is a value-oriented retailer focused on apparel, accessories and home-related merchandise for African American and Latinx families. The company operates under the Citi Trends name and offers products designed to reflect current fashion and lifestyle trends at accessible prices. Its merchandise assortment includes clothing, footwear and accessories for women, men and children, as well as infant and toddler items. Citi Trends also sells beauty products, toys, home décor and other household merchandise.