Analyzing Citi Trends (NASDAQ:CTRN) & BARK (NYSE:BARK)

Citi Trends (NASDAQ:CTRN) and BARK (NYSE:BARK) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

This table compares Citi Trends and BARK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citi Trends	0.84%	8.11%	2.00%
BARK	-8.42%	-35.66%	-14.54%

Analyst Recommendations

This is a summary of recent recommendations for Citi Trends and BARK, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citi Trends	1	0	2	0	2.33
BARK	1	2	2	0	2.20

Citi Trends currently has a consensus target price of $81.00, suggesting a potential upside of 78.61%. BARK has a consensus target price of $15.33, suggesting a potential upside of 62.26%. Given Citi Trends’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Citi Trends is more favorable than BARK.

Volatility & Risk

Citi Trends has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500. Comparatively, BARK has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500.

Valuation and Earnings

This table compares Citi Trends and BARK”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citi Trends	$819.96 million	0.46	$5.21 million	$0.82	55.30
BARK	$394.84 million	0.22	-$39.01 million	($2.81)	-3.36

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

Institutional and Insider Ownership

28.8% of BARK shares are held by institutional investors. 9.6% of Citi Trends shares are held by insiders. Comparatively, 14.8% of BARK shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Citi Trends beats BARK on 10 of the 13 factors compared between the two stocks.

About Citi Trends

Citi Trends, Inc. is a value-oriented retailer focused on apparel, accessories and home-related merchandise for African American and Latinx families. The company operates under the Citi Trends name and offers products designed to reflect current fashion and lifestyle trends at accessible prices. Its merchandise assortment includes clothing, footwear and accessories for women, men and children, as well as infant and toddler items. Citi Trends also sells beauty products, toys, home décor and other household merchandise.

About BARK

BARK, Inc. is a New York-based company focused on developing products, services and experiences for dogs and their owners. The company operates a digitally led, omnichannel business that combines subscription offerings, e-commerce and retail distribution. Its brands and products include BARKBox, a subscription service offering themed boxes of toys and treats; Super Chewer, which provides more durable toys and treats; and BARK Bright, an oral-care line for dogs. BARK also sells toys, treats, food, beds, apparel and other dog-related products through its website, retail partners and other channels.