GoPro (NASDAQ:GPRO – Get Free Report) and Aterian (NASDAQ:ATER – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings for GoPro and Aterian, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GoPro | 1 | 1 | 0 | 0 | 1.50 |
| Aterian | 1 | 0 | 0 | 0 | 1.00 |
Institutional and Insider Ownership
70.1% of GoPro shares are owned by institutional investors. Comparatively, 7.0% of Aterian shares are owned by institutional investors. 18.1% of GoPro shares are owned by company insiders. Comparatively, 19.5% of Aterian shares are owned by company 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.
Valuation & Earnings
This table compares GoPro and Aterian”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GoPro | $568.59 million | 0.22 | -$92.64 million | ($0.99) | -0.68 |
| Aterian | $68.85 million | 0.12 | -$18.98 million | ($1.99) | -0.43 |
Aterian has lower revenue, but higher earnings than GoPro. GoPro is trading at a lower price-to-earnings ratio than Aterian, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
GoPro has a beta of 2.57, meaning that its stock price is 157% more volatile than the S&P 500. Comparatively, Aterian has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.
Profitability
This table compares GoPro and Aterian’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GoPro | -28.52% | -381.63% | -28.86% |
| Aterian | -49.30% | -92.04% | -47.83% |
Summary
GoPro beats Aterian on 8 of the 12 factors compared between the two stocks.
About GoPro
GoPro, Inc. develops and sells cameras and related products for capturing and sharing action and outdoor footage. Its lineup includes rugged action cameras, compact cameras and accessories such as mounts and other gear for different activities and recording setups. The company also offers mobile and desktop software for editing and managing content, along with subscription services that provide features such as cloud storage and access to select services and benefits. GoPro sells its products through its website, retailers and distributors in markets around the world.
About Aterian
Aterian, Inc. (NASDAQ: ATER) is a technology-enabled consumer products company that develops, acquires and sells products through online retail channels. Its portfolio has included household, kitchen, health and wellness, beauty, outdoor and other consumer-focused products marketed under a range of brands. The company uses data analytics, software and automation to identify product opportunities, manage sourcing and manufacturing, optimize marketing, and support sales and inventory decisions. Aterian distributes its products primarily through third-party e-commerce marketplaces, including Amazon and Walmart, as well as through company-operated websites and other online channels.
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