Contrasting RH (NYSE:RH) & Greystone Logistics (OTCMKTS:GLGI)

RH (NYSE:RH) and Greystone Logistics (OTCMKTS:GLGI) 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.

Volatility and Risk

RH has a beta of 2.15, indicating that its share price is 115% more volatile than the S&P 500. Comparatively, Greystone Logistics has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Profitability

This table compares RH and Greystone Logistics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RH	2.57%	-67.71%	2.60%
Greystone Logistics	4.06%	10.46%	4.76%

Analyst Ratings

This is a breakdown of current recommendations for RH and Greystone Logistics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RH	3	4	10	0	2.41
Greystone Logistics	0	0	0	0	0.00

RH presently has a consensus target price of $273.47, indicating a potential upside of 13.76%. Given RH’s stronger consensus rating and higher probable upside, equities research analysts plainly believe RH is more favorable than Greystone Logistics.

Valuation & Earnings

This table compares RH and Greystone Logistics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RH	$3.18 billion	1.42	$72.41 million	$4.20	57.23
Greystone Logistics	$57.87 million	0.61	$2.35 million	$0.08	15.75

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

Insider & Institutional Ownership

90.2% of RH shares are held by institutional investors. Comparatively, 10.3% of Greystone Logistics shares are held by institutional investors. 27.0% of RH 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.

Summary

RH beats Greystone Logistics on 11 of the 14 factors compared between the two stocks.

About RH

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.

About Greystone Logistics

Greystone Logistics, Inc., through its subsidiaries, manufactures and markets plastic pallets and pelletized recycled plastic resins in the United States. The company offers rackable, can, nestable, display, monoblock, half-barrel and slim keg stackable, drum, and mid duty pallets. It sells its pallets directly, as well as through a network of independent contractor distributors. The company was formerly known as PalWeb Corporation and changed its name to Greystone Logistics, Inc. in March 2005. Greystone Logistics, Inc. was incorporated in 1969 and is based in Tulsa, Oklahoma.