Critical Review: Grocery Outlet (NASDAQ:GO) & Yunhong Green CTI (NASDAQ:YHGJ)

Grocery Outlet (NASDAQ:GO) and Yunhong Green CTI (NASDAQ:YHGJ) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Earnings and Valuation

This table compares Grocery Outlet and Yunhong Green CTI”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grocery Outlet	$4.37 billion	0.35	$39.47 million	$0.07	219.86
Yunhong Green CTI	$17.95 million	1.44	-$1.50 million	($0.50)	-18.64

Grocery Outlet has higher revenue and earnings than Yunhong Green CTI. Yunhong Green CTI is trading at a lower price-to-earnings ratio than Grocery Outlet, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Grocery Outlet has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Yunhong Green CTI has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Insider & Institutional Ownership

99.9% of Grocery Outlet shares are held by institutional investors. Comparatively, 2.1% of Yunhong Green CTI shares are held by institutional investors. 4.5% of Grocery Outlet shares are held by company insiders. Comparatively, 44.8% of Yunhong Green CTI shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Grocery Outlet and Yunhong Green CTI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grocery Outlet	2	7	4	0	2.15
Yunhong Green CTI	1	0	0	0	1.00

Grocery Outlet currently has a consensus target price of $16.33, suggesting a potential upside of 6.13%. Given Grocery Outlet’s stronger consensus rating and higher possible upside, research analysts clearly believe Grocery Outlet is more favorable than Yunhong Green CTI.

Profitability

This table compares Grocery Outlet and Yunhong Green CTI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grocery Outlet	0.18%	6.34%	2.35%
Yunhong Green CTI	-5.86%	-11.99%	-4.75%

Summary

Grocery Outlet beats Yunhong Green CTI on 11 of the 14 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 Yunhong Green CTI

Yunhong Green CTI Ltd. develops, produces, distributes, and sells consumer products in the United States and internationally. It offers novelty products, including foil balloons; latex balloons under the Partyloons name; and toy balloon products, which include punch balls, water bombs, and balloons twisted into shapes, as well as other inflatable toy items. The company also offers packaging films and custom film products for food, and other commercial and packaging applications; and container products, as well as assembles and sells Candy Blossom product line. It primarily serves various retail outlets, including general merchandise stores, discount and drugstore chains, grocery chains, card and gift shops, party goods stores, and florists and balloon decorators. The company sells its products directly, as well as through a network of distributors and wholesalers, retail chains, and independent sales representatives. The company was formerly known as Yunhong CTI Ltd. and changed its name to Yunhong Green CTI Ltd. in August 2023. Yunhong Green CTI Ltd. was founded in 1983 and is headquartered in Lake Barrington, Illinois.