WH Smith (OTCMKTS:WHTPF) & Canadian Tire (OTCMKTS:CDNAF) Head-To-Head Analysis

Canadian Tire (OTCMKTS:CDNAF) and WH Smith (OTCMKTS:WHTPF) are both consumer cyclical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Earnings & Valuation

This table compares Canadian Tire and WH Smith”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Tire	$11.68 billion	0.59	$376.67 million	$4.68	27.68
WH Smith	N/A	N/A	N/A	$0.76	9.79

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

Profitability

This table compares Canadian Tire and WH Smith’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Tire	3.63%	10.65%	3.36%
WH Smith	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Canadian Tire and WH Smith, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Tire	0	5	1	0	2.17
WH Smith	0	1	1	0	2.50

Canadian Tire currently has a consensus price target of $205.00, suggesting a potential upside of 58.26%. Given Canadian Tire’s higher probable upside, analysts clearly believe Canadian Tire is more favorable than WH Smith.

Summary

Canadian Tire beats WH Smith on 7 of the 8 factors compared between the two stocks.

About Canadian Tire

Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. It operates in three segments: Retail, CT REIT, and Financial Services. The Retail segment retails automotive maintenance products and accessories, parts, and tires, as well as automotive services and roadside assistance; electrical, hardware, home environment, paint, plumbing, and tool products; cleaning, food & drink, home décor, home essentials, home organization, kitchen, and pet care products; camping, exercise, hockey, hunting, fishing, seasonal recreation, and team sports and golf products; and backyard living, backyard fun, cycling, gardening, outdoor tools, seasonal, and toy products. This segment offers its products under the Canadian Tire, Canadian Tire Gas, Pro Hockey Life, Mark's, PartSource, Helly Hansen, Party City, and SportChek brand names. This segment also participates in loyalty programs, as well as sells its products online. The CT REIT segment operates as a closed-end real estate investment trust that holds a portfolio of properties comprising Canadian Tire stores, Canadian Tire anchored retail developments, industrial properties, mixed-use commercial property, and development properties. The Financial Services segment provides consumer credit cards, in-store financing, insurance products, and retail and broker deposits; and savings accounts and guaranteed investment certificates. Canadian Tire Corporation, Limited was founded in 1922 and is headquartered in Toronto, Canada.

About WH Smith

WH Smith PLC operates as a retailer in the United Kingdom and internationally. It operates in two segments, Travel and High Street. The Travel segment offers news, books, and convenience for travelling customers. It operates stores in airports, hospitals, railway stations, and motorway service areas. The High Street segment sells stationery products, including greeting cards, general stationery, art and craft, and gifting products; news and impulse products, such as newspapers, magazines, confectionery, and drinks; and books. The company sells its products through digital channels, such as whsmith.co.uk, funkypigeon.com, cultpens.com and dottyaboutpaper.co.uk. The company was founded in 1792 and is based in Swindon, the United Kingdom.