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

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

Risk and Volatility

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BARK	$394.84 million	0.21	-$39.01 million	($2.81)	-3.31
Citi Trends	$819.96 million	0.44	$5.21 million	$0.82	53.29

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.

Analyst Recommendations

This is a summary of current ratings for BARK and Citi Trends, as reported by MarketBeat.com.

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

BARK currently has a consensus target price of $15.33, indicating a potential upside of 64.84%. Citi Trends has a consensus target price of $81.00, indicating a potential upside of 85.35%. Given Citi Trends’ stronger consensus rating and higher probable upside, analysts clearly believe Citi Trends is more favorable than BARK.

Insider and Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BARK	-6.95%	-31.49%	-13.50%
Citi Trends	0.84%	8.11%	2.00%

Summary

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

About BARK

BARK, Inc. is a dog-focused consumer products company that develops and sells toys, treats and other products for dogs. Its offerings include themed subscription boxes as well as products available for individual purchase. The company’s brands include BarkBox, which delivers curated toys and treats, and Super Chewer, which features products designed for dogs that are persistent chewers. BARK also sells products through its website and retail partners. BARK originated as BarkBox, a subscription service launched in 2011, and later expanded into a broader dog-products business.

About Citi Trends

Citi Trends, Inc. is a U.S. off-price retailer offering apparel, footwear, accessories, beauty products, home goods, toys and seasonal merchandise. Its stores focus on value-conscious shoppers, with product assortments for men, women and children. The company serves customers through retail stores across the United States, emphasizing neighborhoods with diverse and multicultural communities. Merchandise and selection may vary by store and season. Citi Trends traces its roots to Allied Department Stores, founded in 1946, and adopted the Citi Trends name in 2001.