Contrasting JOANN (NASDAQ:JOANQ) and ODP (NASDAQ:ODP)

JOANN (NASDAQ:JOANQ) and ODP (NASDAQ:ODP) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Profitability

This table compares JOANN and ODP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JOANN	-11.10%	N/A	-4.99%
ODP	1.77%	19.45%	5.60%

Risk & Volatility

JOANN has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, ODP has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500.

Institutional & Insider Ownership

72.1% of JOANN shares are owned by institutional investors. Comparatively, 99.6% of ODP shares are owned by institutional investors. 73.4% of JOANN shares are owned by company insiders. Comparatively, 3.6% of ODP shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares JOANN and ODP’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JOANN	$2.22 billion	0.00	-$200.60 million	($5.81)	-0.01
ODP	$7.83 billion	0.23	$139.00 million	$3.38	14.79

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for JOANN and ODP, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JOANN	0	0	0	0	N/A
ODP	0	1	2	0	2.67

ODP has a consensus target price of $62.00, indicating a potential upside of 24.00%. Given ODP’s higher possible upside, analysts plainly believe ODP is more favorable than JOANN.

Summary

ODP beats JOANN on 12 of the 13 factors compared between the two stocks.

About JOANN

JOANN Inc. involved in the sewing and fabrics industry. It serves as a convenient single source for all of the supplies, guidance and inspiration needed to achieve any project or passion. JOANN Inc. is based in HUDSON, Ohio.

About ODP

The ODP Corporation provides business services and supplies, products, and digital workplace technology solutions for small, medium, and enterprise businesses in the United States, Puerto Rico, and the U.S. Virgin Islands. The company operates through four divisions: ODP Business Solutions, Office Depot, Veyer, and Varis. The ODP Business Solutions division offers adjacency products, including cleaning, janitorial, and breakroom supplies, office furniture, technology products; and copy and print services through sales force, catalogs, telesales, and through Internet websites. This segment also engages in office supply distribution business. The Office Depot division sells office supplies, technology products and solutions, business machines and related supplies, cleaning, breakroom and facilities products, personal protective equipment, and office furniture; and offers business services, including copying, printing, digital imaging, mailing, shipping, and technology support services through a fully integrated omni-channel platform of 980 Office Depot and OfficeMax retail stores, and through www.officedepot.com. The Veyer division engages in supply chain, distribution, procurement, and global sourcing operations. The Varis division operates tech-enabled B2B indirect procurement marketplace, where buyers and suppliers to transact through the platform's consumer-like buying experience, advanced spend management tools, network of suppliers, and technology capabilities. The company offers its products under various brands, including Office Depot, OfficeMax, and Grand&Toy, as well as others. The ODP Corporation was incorporated in 1986 and is headquartered in Boca Raton, Florida.