Big Tree Cloud (NASDAQ:DSY) versus WD-40 (NASDAQ:WDFC) Financial Analysis

Big Tree Cloud (NASDAQ:DSY) and WD-40 (NASDAQ:WDFC) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings for Big Tree Cloud and WD-40, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Big Tree Cloud	1	0	0	0	1.00
WD-40	0	1	1	0	2.50

WD-40 has a consensus target price of $300.00, indicating a potential upside of 39.04%. Given WD-40’s stronger consensus rating and higher possible upside, analysts clearly believe WD-40 is more favorable than Big Tree Cloud.

Insider & Institutional Ownership

60.2% of Big Tree Cloud shares are owned by institutional investors. Comparatively, 91.5% of WD-40 shares are owned by institutional investors. 34.1% of Big Tree Cloud shares are owned by company insiders. Comparatively, 0.8% of WD-40 shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Big Tree Cloud has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, WD-40 has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500.

Profitability

This table compares Big Tree Cloud and WD-40’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Big Tree Cloud	N/A	N/A	N/A
WD-40	14.42%	30.10%	16.79%

Valuation & Earnings

This table compares Big Tree Cloud and WD-40″s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Big Tree Cloud	$2.56 million	5.12	-$32.53 million	N/A	N/A
WD-40	$620.91 million	4.69	$90.99 million	$6.57	32.84

WD-40 has higher revenue and earnings than Big Tree Cloud.

Summary

WD-40 beats Big Tree Cloud on 9 of the 12 factors compared between the two stocks.

About Big Tree Cloud

Big Tree Cloud Holdings Limited manufactures and sells personal care products and other consumer goods. The company is based in Shenzhen, China. Big Tree Cloud Holdings Limited operates as a subsidiary of Ploutos Group Limited.

About WD-40

WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, precision pens, and in liquid-bulk form products under the WD-40 Multi-Use brand name; specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand; and bike-specific products. It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike maintenance market under the GT85 brand name. In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers. WD-40 Company was founded in 1953 and is headquartered in San Diego, California.