Critical Contrast: Winmark (NASDAQ:WINA) vs. CIMG (NASDAQ:IMG)

Winmark (NASDAQ:WINA) and CIMG (NASDAQ:IMG) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Earnings & Valuation

This table compares Winmark and CIMG”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Winmark	$83.10 million	16.51	$40.18 million	$11.19	34.71
CIMG	$3.79 million	0.75	-$8.75 million	($7.37)	-0.08

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

Institutional and Insider Ownership

73.3% of Winmark shares are owned by institutional investors. Comparatively, 23.4% of CIMG shares are owned by institutional investors. 10.1% of Winmark shares are owned by company insiders. Comparatively, 0.1% of CIMG 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.

Volatility and Risk

Winmark has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, CIMG has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Winmark and CIMG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Winmark	0	0	1	0	3.00
CIMG	0	0	0	0	0.00

Winmark presently has a consensus target price of $445.00, suggesting a potential upside of 14.58%. Given Winmark’s stronger consensus rating and higher possible upside, research analysts clearly believe Winmark is more favorable than CIMG.

Profitability

This table compares Winmark and CIMG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Winmark	49.15%	-93.24%	88.80%
CIMG	-251.32%	-1,600.52%	-202.10%

Summary

Winmark beats CIMG on 13 of the 14 factors compared between the two stocks.

About Winmark

Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.

About CIMG

CIMG Inc. is a digital marketing, sales and distribution company for various consumer products with focuses on food and beverages. CIMG Inc., formerly known as NUZEE INC., is based in BEIJING.