Comparing Ceconomy (OTCMKTS:MTTRY) & Olaplex (NASDAQ:OLPX)

Ceconomy (OTCMKTS:MTTRY) and Olaplex (NASDAQ:OLPX) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Institutional & Insider Ownership

87.4% of Olaplex shares are held by institutional investors. 4.2% of Olaplex 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.

Valuation and Earnings

This table compares Ceconomy and Olaplex”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ceconomy	$25.51 billion	0.09	-$38.73 million	$0.08	11.37
Olaplex	$425.35 million	3.22	-$9.25 million	($0.02)	-102.00

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

Risk and Volatility

Ceconomy has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Olaplex has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500.

Profitability

This table compares Ceconomy and Olaplex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ceconomy	0.71%	43.51%	2.32%
Olaplex	-3.53%	2.22%	1.30%

Analyst Recommendations

This is a summary of recent ratings and price targets for Ceconomy and Olaplex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ceconomy	0	0	0	0	0.00
Olaplex	2	4	1	0	1.86

Olaplex has a consensus target price of $1.92, suggesting a potential downside of 5.74%. Given Olaplex’s stronger consensus rating and higher probable upside, analysts clearly believe Olaplex is more favorable than Ceconomy.

Summary

Olaplex beats Ceconomy on 8 of the 14 factors compared between the two stocks.

About Ceconomy

Ceconomy AG, together with its subsidiaries, engages in the consumer electronics retail business. It operates stores under the MediaMarkt and Saturn brands. The company offers professional assistance for the installation, connection, and troubleshooting of electronic devices at home under the Deutsche Technikberatung brand. It operates in Germany, Austria, Switzerland, and Hungary, as well as in Western, Southern, and Eastern Europe. Ceconomy AG is based in Düsseldorf, Germany.

About Olaplex

Olaplex Holdings, Inc. develops, manufactures, and sells hair care products in the United States and internationally. The company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair, as well as oil, moisture mask, and nourishing hair serum. It provides hair care products to professional hair salons, retailers, and everyday consumers. The company distributes its products through professional distributors in salons, directly to retailers for sale in their physical stores, e-commerce sites, and its website, Olaplex.com, as well as third party e-commerce platforms. The company was founded in 2014 and is based in Santa Barbara, California.