iPower (NASDAQ:IPW) versus Canadian Tire (OTCMKTS:CDNAF) Financial Analysis

iPower (NASDAQ:IPWGet Free Report) and Canadian Tire (OTCMKTS:CDNAFGet Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Valuation and Earnings

This table compares iPower and Canadian Tire”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
iPower $66.14 million 0.03 -$4.97 million ($480.49) -0.00
Canadian Tire $11.68 billion 0.61 $376.67 million $7.53 18.00

Canadian Tire has higher revenue and earnings than iPower. iPower is trading at a lower price-to-earnings ratio than Canadian Tire, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

2.7% of iPower shares are held by institutional investors. 0.7% of iPower shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for iPower and Canadian Tire, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iPower 1 0 0 0 1.00
Canadian Tire 0 4 1 0 2.20

Canadian Tire has a consensus price target of $205.00, indicating a potential upside of 51.22%. Given Canadian Tire’s stronger consensus rating and higher probable upside, analysts clearly believe Canadian Tire is more favorable than iPower.

Profitability

This table compares iPower and Canadian Tire’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iPower -23.43% -26.96% -14.85%
Canadian Tire 4.09% 10.84% 3.38%

Summary

Canadian Tire beats iPower on 11 of the 13 factors compared between the two stocks.

About iPower

(Get Free Report)

iPower Inc. operates as an online retailer and supplier of consumer home, garden, and pet products for commercial businesses and individuals in the United States. The company offers grow light systems; advanced heating, ventilation, and air conditioning systems; water pumps, heaters, chillers, and filters; nutrient and fertilizer delivery systems; and various growing media products. It also provides general gardening products, including environmental sensors and controls; and home products, which comprise commercial fans, floor and wall fans, storage and shelving units, and chairs. The company sells its products under the iPower and Simple Deluxe brand names through zenhydro.com, simpledeluxe.com, and various third-party online platforms. The company was formerly known as BZRTH Inc. and changed its name to iPower Inc. in September 2020. iPower Inc. was incorporated in 2018 and is based in Rancho Cucamonga, California.

About Canadian Tire

(Get Free Report)

Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. It operates in three segments: Retail, CT REIT, and Financial Services. The Retail segment retails automotive maintenance products and accessories, parts, and tires, as well as automotive services and roadside assistance; electrical, hardware, home environment, paint, plumbing, and tool products; cleaning, food & drink, home décor, home essentials, home organization, kitchen, and pet care products; camping, exercise, hockey, hunting, fishing, seasonal recreation, and team sports and golf products; and backyard living, backyard fun, cycling, gardening, outdoor tools, seasonal, and toy products. This segment offers its products under the Canadian Tire, Canadian Tire Gas, Pro Hockey Life, Mark's, PartSource, Helly Hansen, Party City, and SportChek brand names. This segment also participates in loyalty programs, as well as sells its products online. The CT REIT segment operates as a closed-end real estate investment trust that holds a portfolio of properties comprising Canadian Tire stores, Canadian Tire anchored retail developments, industrial properties, mixed-use commercial property, and development properties. The Financial Services segment provides consumer credit cards, in-store financing, insurance products, and retail and broker deposits; and savings accounts and guaranteed investment certificates. Canadian Tire Corporation, Limited was founded in 1922 and is headquartered in Toronto, Canada.

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