Head to Head Review: Grocery Outlet (NASDAQ:GO) versus Redcare Pharmacy (OTCMKTS:SAEYY)

Redcare Pharmacy (OTCMKTS:SAEYY) and Grocery Outlet (NASDAQ:GO) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Redcare Pharmacy and Grocery Outlet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redcare Pharmacy	0	0	2	0	3.00
Grocery Outlet	2	12	0	0	1.86

Grocery Outlet has a consensus target price of $10.59, suggesting a potential downside of 9.00%. Given Grocery Outlet’s higher probable upside, analysts clearly believe Grocery Outlet is more favorable than Redcare Pharmacy.

Earnings & Valuation

This table compares Redcare Pharmacy and Grocery Outlet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redcare Pharmacy	N/A	N/A	N/A	N/A	N/A
Grocery Outlet	$4.74 billion	0.24	-$224.91 million	($3.87)	-3.01

Redcare Pharmacy has higher earnings, but lower revenue than Grocery Outlet.

Insider and Institutional Ownership

99.9% of Grocery Outlet shares are held by institutional investors. 5.6% of Grocery Outlet shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Redcare Pharmacy and Grocery Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redcare Pharmacy	N/A	N/A	N/A
Grocery Outlet	-8.04%	5.84%	1.79%

Summary

Grocery Outlet beats Redcare Pharmacy on 6 of the 9 factors compared between the two stocks.

About Redcare Pharmacy

Redcare Pharmacy NV operates in online pharmacy business in the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France. It provides prescription and non-prescription over-the-counter pharmaceuticals, beauty and personal care products, and food supplements. The company was formerly known as Shop Apotheke Europe N.V. and changed its name to Redcare Pharmacy NV in June 2023. Redcare Pharmacy NV was founded in 2001 and is headquartered in Sevenum, the Netherlands.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.