Critical Review: Savers Value Village (NYSE:SVV) and Grasim Industries (OTCMKTS:GRSXY)

Savers Value Village (NYSE:SVV) and Grasim Industries (OTCMKTS:GRSXY) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Insider & Institutional Ownership

98.8% of Savers Value Village shares are owned by institutional investors. 3.1% of Savers Value Village shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Savers Value Village and Grasim Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Savers Value Village	$1.54 billion	0.84	$29.03 million	($0.01)	-824.60
Grasim Industries	$17.74 billion	0.72	$437.27 million	$0.75	26.00

Grasim Industries has higher revenue and earnings than Savers Value Village. Savers Value Village is trading at a lower price-to-earnings ratio than Grasim Industries, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Savers Value Village has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Grasim Industries has a beta of -0.03, indicating that its share price is 103% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Savers Value Village and Grasim Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Savers Value Village	0	4	4	1	2.67
Grasim Industries	0	0	0	0	0.00

Savers Value Village presently has a consensus price target of $13.67, indicating a potential upside of 65.74%. Given Savers Value Village’s stronger consensus rating and higher possible upside, equities analysts clearly believe Savers Value Village is more favorable than Grasim Industries.

Profitability

This table compares Savers Value Village and Grasim Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Savers Value Village	-0.11%	9.18%	2.01%
Grasim Industries	2.71%	5.48%	1.75%

Summary

Savers Value Village beats Grasim Industries on 10 of the 15 factors compared between the two stocks.

About Savers Value Village

Savers Value Village, Inc. sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Value Village Boutique, Village des Valeurs, Unique, and 2nd Avenue brands. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners and then processes, selects, prices, merchandises, and sells them in its stores. It serves retail and wholesale customers. The company was formerly known as S-Evergreen Holding LLC and changed its name to Savers Value Village, Inc. in January 2022. Savers Value Village, Inc. was founded in 1954 and is based in Bellevue, Washington.

About Grasim Industries

Grasim Industries Limited operates in fibre, yarn, pulp, chemicals, textile, fertilizers, and insulators businesses in India and internationally. The company operates through Viscose, Chemicals, Cement, Financial Services, and Others segments. It provides viscose staple fiber, a man-made biodegradable fiber for use in apparels, home textiles, dress materials, knit wear products, and non-woven applications; wood pulp products; viscose filament yarn, a natural fibre for manufacturing fabrics such as georgettes, crepes, chiffons, and others; and textile products, such as linen and wool. The company offers various chemical products, including chlor-alkali and epoxy resin products. In addition, it provides electrical insulators for transmission lines and substations, as well as equipment and railways. Further, the company offers grey cement; white cement; ready mix concrete; and cement-based putty. Additionally, it provides various financial services comprising non-bank financial, life insurance, asset management, housing finance, equity broking, wealth management, general insurance advisory, and health insurance services. The company involved in solar power designing, engineering procurement, and commissioning business. Grasim Industries Limited was incorporated in 1947 and is based in Mumbai, India.