Head to Head Analysis: Advantage Solutions (NASDAQ:ADV) and Kid Brands (OTCMKTS:KIDBQ)

Advantage Solutions (NASDAQ:ADV) and Kid Brands (OTCMKTS:KIDBQ) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Valuation & Earnings

This table compares Advantage Solutions and Kid Brands”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Solutions	$3.54 billion	0.16	-$227.74 million	($18.74)	-2.26
Kid Brands	N/A	N/A	N/A	N/A	N/A

Kid Brands has lower revenue, but higher earnings than Advantage Solutions.

Profitability

This table compares Advantage Solutions and Kid Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advantage Solutions	-6.78%	-37.22%	-7.93%
Kid Brands	N/A	N/A	N/A

Insider & Institutional Ownership

49.8% of Advantage Solutions shares are owned by institutional investors. 9.4% of Advantage Solutions shares are owned by insiders. Comparatively, 24.5% of Kid Brands shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Advantage Solutions and Kid Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Solutions	1	2	1	0	2.00
Kid Brands	0	0	0	0	0.00

Advantage Solutions presently has a consensus target price of $34.38, indicating a potential downside of 18.75%. Given Kid Brands’ higher probable upside, analysts plainly believe Kid Brands is more favorable than Advantage Solutions.

Summary

Kid Brands beats Advantage Solutions on 5 of the 9 factors compared between the two stocks.

About Advantage Solutions

Advantage Solutions Inc. provides business solutions to consumer goods manufacturers and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising and in-store media services. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; retailer-centric services, such as retail experiential and private label services; and digital marketing, and digital media and advertising services. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. The company was founded in 1987 and is headquartered in Irvine, California.

About Kid Brands

Kid Brands, Inc., together with its subsidiaries, designs, imports, markets, and distributes infant and juvenile consumer products. The company offers infant bedding and related nursery accessories and décor, such as blankets, rugs, mobiles, nightlights, hampers, lamps, and wall art, as well as nursery appliances, diaper bags, and spa/bath products art under the Kids Line, Carter’s, Disney, CoCaLo Baby, CoCaLo Couture, and CoCaLo Naturals brands. It also provides cribs, mattresses, and other nursery furniture under the BabiItalia, Europa Baby, Bonavita, Graco, and Serta brands; and developmental toys and feeding products, bath and baby care items, and baby gear with features that address the various stages of an infant’s early years under the Sassy, Carter’s, Disney, Garanimals, and Kokopax brands. In addition, the company markets a range of products under various licenses, including Carter’s, Disney, Graco, and Serta. Kid Brands, Inc. sells its products through its own direct sales force, as well as through independent representatives and distributors to retail customers in the United States and internationally, including mass merchandisers, baby superstores, specialty stores, department stores, and boutiques. The company was formerly known as Russ Berrie and Company, Inc. and changed its name to Kid Brands, Inc. in September 2009. Kid Brands, Inc. was founded in 1963 and is headquartered in Rutherford, New Jersey. On June 18, 2014, Kid Brands, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of New Jersey.