Critical Comparison: Coupang (NYSE:CPNG) and Sears Canada (OTCMKTS:SRSCQ)

Sears Canada (OTCMKTS:SRSCQ) and Coupang (NYSE:CPNG) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Earnings and Valuation

This table compares Sears Canada and Coupang”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sears Canada	N/A	N/A	N/A	N/A	N/A
Coupang	$34.53 billion	0.83	$208.00 million	($0.43)	-37.29

Coupang has higher revenue and earnings than Sears Canada.

Profitability

This table compares Sears Canada and Coupang’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sears Canada	N/A	N/A	N/A
Coupang	-2.16%	-8.77%	-2.00%

Institutional and Insider Ownership

49.1% of Sears Canada shares are owned by institutional investors. Comparatively, 83.7% of Coupang shares are owned by institutional investors. 12.8% of Coupang shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sears Canada and Coupang, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sears Canada	0	0	0	0	0.00
Coupang	2	4	6	0	2.33

Coupang has a consensus price target of $25.39, indicating a potential upside of 58.35%. Given Coupang’s stronger consensus rating and higher probable upside, analysts plainly believe Coupang is more favorable than Sears Canada.

Summary

Coupang beats Sears Canada on 6 of the 9 factors compared between the two stocks.

About Sears Canada

Sears Canada Inc. operates as a multi-format retailer in Canada. The company operates department stores that offer various merchandise, including women’s, men’s, and children’s apparel, as well as nursery products, cosmetics, jewelry, footwear, and accessories; and home furnishings and mattresses, home décor, lawn and garden, hardware, leisure, seasonal products, toys, floorcare, sewing, and various appliances. It also operates home stores, which provide furniture, mattresses and box-springs, and various appliances; hometown stores that offer various appliances, furniture, mattresses and box-springs, and outdoor power equipment; outlet stores, which provide clearance merchandise and surplus big-ticket items; and appliance specialty stores. In addition, the company offers a range of home services, such as carpet and duct cleaning, installation and assembly of heating and cooling equipment, custom window coverings, windows and doors, and other products purchased at its stores. Further, it provides logistics, product repair, travel, home improvement, insurance, and licensing services, as well as wireless and long distance plans. Additionally, the company operates optical centers and portrait studios; and catalogue and Internet channels. It has a network of full-line department stores; specialty stores comprising Sears Home stores, outlet stores, Hometown stores, and Corbeil stores; Sears Travel offices; and merchandise pick-up locations for orders placed through the catalogue or online at sears.ca. The company was formerly known as Simpsons-Sears Limited and changed its name to Sears Canada Inc. in May 1984. Sears Canada Inc. was founded in 1952 and is headquartered in Toronto, Canada.

About Coupang

Coupang, Inc., together with its subsidiaries owns and operates retail business through its mobile applications and Internet websites primarily in South Korea. The company operates through Product Commerce and Developing Offerings segments. It sells various products and services in the categories of home goods and décor products, apparel, beauty products, fresh food and groceries, sporting goods, electronics, and everyday consumables, as well as travel, and restaurant order and delivery services. In addition, the company offers Rocket Fresh, which offers fresh groceries; Coupang Eats, a restaurant ordering and delivery services; and Coupang Play, an online content streaming services, as well as advertising products. It also performs operations and support services in the United States, South Korea, Taiwan, Singapore, China, Japan, and India. Coupang, Inc. was incorporated in 2010 and is headquartered in Seattle, Washington.