Petco Health and Wellness (NASDAQ:WOOF – Get Free Report) and Digital Brands Group (NASDAQ:DBGI – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.
Profitability
This table compares Petco Health and Wellness and Digital Brands Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Petco Health and Wellness | 0.51% | 3.44% | 0.78% |
| Digital Brands Group | -768.25% | -561.70% | -90.27% |
Analyst Recommendations
This is a breakdown of current recommendations for Petco Health and Wellness and Digital Brands Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Petco Health and Wellness | 2 | 5 | 1 | 1 | 2.11 |
| Digital Brands Group | 1 | 0 | 0 | 0 | 1.00 |
Risk and Volatility
Petco Health and Wellness has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500. Comparatively, Digital Brands Group has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500.
Valuation & Earnings
This table compares Petco Health and Wellness and Digital Brands Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Petco Health and Wellness | $5.97 billion | 0.12 | $9.07 million | $0.10 | 22.30 |
| Digital Brands Group | $7.38 million | 0.51 | -$28.25 million | ($88.79) | -0.05 |
Petco Health and Wellness has higher revenue and earnings than Digital Brands Group. Digital Brands Group is trading at a lower price-to-earnings ratio than Petco Health and Wellness, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
1.6% of Digital Brands Group shares are owned by institutional investors. 6.5% of Petco Health and Wellness shares are owned by company insiders. Comparatively, 0.0% of Digital Brands Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Petco Health and Wellness beats Digital Brands Group on 13 of the 15 factors compared between the two stocks.
About Petco Health and Wellness
Petco Health and Wellness Company, Inc., operates as a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites. The company offers its products under the WholeHearted, Reddy, and Well & Good brands. Petco Health and Wellness Company, Inc. was founded in 1965 and is headquartered in San Diego, California.
About Digital Brands Group
Digital Brands Group, Inc. engages in the provision of apparel products under various brands on direct-to-consumer and wholesale basis. It operates through DSTLD, Bailey, H&J, Stateside, and Sundry segments. The company designs, manufactures, and sells women's apparel, such as tops, sweaters, dresses, jumpsuits, bottoms, sets, jackets, rompers, suiting, sportswear, shirts, jackets, pants, shorts, polos, T-shirts, skirts, athleisure bottoms, denims, and other accessory products, as well as suiting for men. It sells its products under the Bailey 44, Harper & Jones, Stateside, Sunnyside, DSTLD, Sundry, and ACE Studios brand names. The company sells directly to the consumer through its websites, as well as through its wholesale channel in specialty stores, select department stores, and own showrooms. Digital Brands Group, Inc. was formerly known as Denim.LA, Inc. Digital Brands Group, Inc. was incorporated in 2012 and is headquartered in Austin, Texas.
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