Traeger (NYSE:COOK) versus Foxx Development (NASDAQ:FOXX) Financial Review

Traeger (NYSE:COOK) and Foxx Development (NASDAQ:FOXX) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Insider and Institutional Ownership

46.8% of Traeger shares are held by institutional investors. Comparatively, 60.4% of Foxx Development shares are held by institutional investors. 16.1% of Traeger shares are held by company insiders. Comparatively, 31.6% of Foxx Development shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Traeger has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Foxx Development has a beta of -0.21, suggesting that its share price is 121% less volatile than the S&P 500.

Profitability

This table compares Traeger and Foxx Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Traeger	-18.01%	-11.31%	-3.68%
Foxx Development	-24.62%	N/A	-42.32%

Earnings and Valuation

This table compares Traeger and Foxx Development”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Traeger	$604.07 million	0.20	-$34.01 million	($0.79)	-1.12
Foxx Development	$65.92 million	0.51	-$9.02 million	($2.26)	-2.19

Foxx Development has lower revenue, but higher earnings than Traeger. Foxx Development is trading at a lower price-to-earnings ratio than Traeger, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Traeger and Foxx Development, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Traeger	2	6	1	0	1.89
Foxx Development	1	0	0	0	1.00

Traeger currently has a consensus target price of $2.09, suggesting a potential upside of 135.78%. Given Traeger’s stronger consensus rating and higher probable upside, equities analysts clearly believe Traeger is more favorable than Foxx Development.

Summary

Traeger beats Foxx Development on 9 of the 14 factors compared between the two stocks.

About Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.

About Foxx Development

Foxx Development Holdings Inc. is a consumer electronics and integrated Internet-of-Things solution company catering to both retail and institutional clients. The company currently sells a diverse range of products including mobile phones, tablets and other consumer electronics devices principally in United State and is in the process of developing and distributing end-to-end communication terminals and IoT solutions. Foxx Development Holdings Inc., formerly known as Acri Capital Acquisition Corporation, is based in Austin, TX.