Contrasting Grocery Outlet (NASDAQ:GO) and NextPlat (NASDAQ:NXPL)

NextPlat (NASDAQ:NXPL) and Grocery Outlet (NASDAQ:GO) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NextPlat	-20.38%	-54.66%	-34.82%
Grocery Outlet	-8.04%	5.84%	1.79%

Volatility & Risk

NextPlat has a beta of 1.94, suggesting that its share price is 94% more volatile than the S&P 500. Comparatively, Grocery Outlet has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for NextPlat and Grocery Outlet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextPlat	1	1	1	0	2.00
Grocery Outlet	2	12	0	0	1.86

NextPlat currently has a consensus price target of $11.00, indicating a potential upside of 22.09%. Grocery Outlet has a consensus price target of $10.59, indicating a potential downside of 4.33%. Given NextPlat’s stronger consensus rating and higher possible upside, equities analysts plainly believe NextPlat is more favorable than Grocery Outlet.

Institutional and Insider Ownership

1.3% of NextPlat shares are owned by institutional investors. Comparatively, 99.9% of Grocery Outlet shares are owned by institutional investors. 46.1% of NextPlat shares are owned by insiders. Comparatively, 5.6% of Grocery Outlet shares are owned by 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.

Valuation & Earnings

This table compares NextPlat and Grocery Outlet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NextPlat	$54.32 million	0.45	-$10.46 million	($3.67)	-2.46
Grocery Outlet	$4.69 billion	0.23	-$224.91 million	($3.87)	-2.86

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

Summary

NextPlat beats Grocery Outlet on 9 of the 14 factors compared between the two stocks.

About NextPlat

NextPlat Corp operates as a healthcare and e-commerce company in Europe, North America, South America, the Asia and Pacific, and Africa. The company operates full-service retail specialty services pharmacies that provides prescription pharmaceuticals prescription pharmaceuticals, third-party administration, risk and data management services, compounded medications, tele-pharmacy services, anti-retroviral medications, medication therapy management, contracted pharmacy services, and health practice risk management to healthcare organizations and providers, as well as supplies prescription medications to long-term care facilities. It also offers COVID-19 related diagnostics and vaccinations, and medication adherence packaging; and value-added services, such as prior authorization assistance, same-day home-medication delivery, on site provider consultation services, primary care reporting and analytics, and customized packaging solutions, as well as acquires and leases an e-commerce platform to collaborate with businesses to optimize their ability to sell their goods online. In addition, it operates e-commerce websites, as well as third-party e-commerce storefronts that provides mobile satellite services solutions for satellite-enabled voice, data, personnel and asset tracking, machine-to-machine, and internet of things connectivity services; voice, data communications, internet of things (IoT), and machine-to-machine services; tracking and monitoring solutions and services; satellite communications products; and GPS enabled emergency locator distress beacons. Further, it offers satellite tracking devices used to monitor the location, movements, and history of anything that moves; SolarTrack, a compact, lightweight, IoT tracking device powered by the sun; and GTCTrack, a subscription-based mapping and tracking portal. The company was formerly known as Orbsat Corp. and changed its name to NextPlat Corp in January 2022. NextPlat Corp is based in Coconut Grove, Florida.

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.