Critical Contrast: Traeger (NYSE:COOK) and Koala (OTCMKTS:KARE)

Traeger (NYSE:COOK) and Koala (OTCMKTS:KARE) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Institutional and Insider Ownership

46.8% of Traeger shares are held by institutional investors. 14.7% of Traeger shares are held by company insiders. Comparatively, 8.1% of Koala shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Traeger and Koala’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Traeger	-18.01%	-11.31%	-3.68%
Koala	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings for Traeger and Koala, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Traeger	2	5	1	0	1.88
Koala	0	0	0	0	0.00

Traeger currently has a consensus price target of $2.09, indicating a potential upside of 102.29%. Given Traeger’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Traeger is more favorable than Koala.

Valuation & Earnings

This table compares Traeger and Koala”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Traeger	$604.07 million	0.23	-$34.01 million	($0.79)	-1.31
Koala	N/A	N/A	N/A	N/A	N/A

Koala has lower revenue, but higher earnings than Traeger.

Summary

Traeger beats Koala on 6 of the 9 factors compared between the two stocks.

About Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.

About Koala

Koala Corporation, doing business as Tech World, Inc., a technology company, offers technical services in the areas of security administration, architecture and paradigms, access management system and processes, applications development, operations, data encryption, telecommunications, network and WAN, business continuity planning, crime law, and investigation and ethics. It also provides alternative energy sources for commercial offices and residential houses, and retirement homes; secure and phone encryption communication services; cellular and wireless data services; and staff augmentation and forensic recovery services, as well as writes applications for mobile phones. In addition, the company offers products for the government market that include thermal imaging cameras, secure communication systems, cellular and satellite phones, ERP and CRM software, and RFID and tracking equipment; and the fuel industry, such as car and truck HHO systems, fuel additives, water-engine heating and home cooking systems, and acetylene replacements. Further, it provides products for the television (TV) market, including 2-D to 3-D conversion boxes, cable TV networks, Internet over cable systems, and satellite TV and data systems; and the telecom market, such as calling cards, direct VOIP systems, WI-max and mobile banking systems, network management products, and unified communication systems, as well as for green-energy and bank markets. The company was incorporated in 1993 and is based in Vienna, Virginia.