Comparing Advantage Solutions (NASDAQ:ADV) & Traeger (NYSE:COOK)

Advantage Solutions (NASDAQ:ADV) and Traeger (NYSE:COOK) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Advantage Solutions	-6.78%	-37.22%	-7.93%
Traeger	-21.84%	-13.76%	-3.95%

Valuation & Earnings

This table compares Advantage Solutions and Traeger”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Solutions	$3.54 billion	0.14	-$227.74 million	($18.74)	-1.95
Traeger	$559.52 million	0.30	-$115.18 million	($41.92)	-1.44

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

Risk & Volatility

Advantage Solutions has a beta of 2.18, indicating that its stock price is 118% more volatile than the S&P 500. Comparatively, Traeger has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500.

Institutional & Insider Ownership

49.8% of Advantage Solutions shares are held by institutional investors. Comparatively, 46.8% of Traeger shares are held by institutional investors. 9.7% of Advantage Solutions shares are held by insiders. Comparatively, 16.2% of Traeger shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Advantage Solutions and Traeger, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Solutions	1	2	1	0	2.00
Traeger	1	4	1	1	2.29

Advantage Solutions presently has a consensus target price of $34.38, suggesting a potential downside of 6.11%. Traeger has a consensus target price of $50.08, suggesting a potential downside of 16.90%. Given Advantage Solutions’ higher possible upside, equities research analysts clearly believe Advantage Solutions is more favorable than Traeger.

Summary

Traeger beats Advantage Solutions on 8 of the 14 factors compared between the two stocks.

About Advantage Solutions

Advantage Solutions Inc. provides business solutions to consumer goods manufacturers and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising and in-store media services. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; retailer-centric services, such as retail experiential and private label services; and digital marketing, and digital media and advertising services. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. The company was founded in 1987 and is headquartered in Irvine, California.

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.