Comparing ODP (NASDAQ:ODP) & JOANN (NASDAQ:JOANQ)

ODP (NASDAQ:ODP) and JOANN (NASDAQ:JOANQ) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Insider and Institutional Ownership

99.6% of ODP shares are held by institutional investors. Comparatively, 72.1% of JOANN shares are held by institutional investors. 3.6% of ODP shares are held by company insiders. Comparatively, 73.4% of JOANN shares are held by company 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 ODP and JOANN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ODP	1.77%	19.45%	5.60%
JOANN	-11.10%	N/A	-4.99%

Analyst Ratings

This is a breakdown of recent ratings and target prices for ODP and JOANN, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ODP	0	1	2	0	2.67
JOANN	0	0	0	0	N/A

ODP currently has a consensus target price of $62.00, suggesting a potential upside of 23.31%. Given ODP’s higher probable upside, research analysts clearly believe ODP is more favorable than JOANN.

Valuation and Earnings

This table compares ODP and JOANN’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ODP	$7.83 billion	0.24	$139.00 million	$3.38	14.88
JOANN	$2.22 billion	0.00	-$200.60 million	($5.81)	-0.02

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

Volatility & Risk

ODP has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, JOANN has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Summary

ODP beats JOANN on 12 of the 13 factors compared between the two stocks.

About ODP

The ODP Corporation provides business services and supplies, products, and digital workplace technology solutions for small, medium, and enterprise businesses in the United States, Puerto Rico, and the U.S. Virgin Islands. The company operates through four divisions: ODP Business Solutions, Office Depot, Veyer, and Varis. The ODP Business Solutions division offers adjacency products, including cleaning, janitorial, and breakroom supplies, office furniture, technology products; and copy and print services through sales force, catalogs, telesales, and through Internet websites. This segment also engages in office supply distribution business. The Office Depot division sells office supplies, technology products and solutions, business machines and related supplies, cleaning, breakroom and facilities products, personal protective equipment, and office furniture; and offers business services, including copying, printing, digital imaging, mailing, shipping, and technology support services through a fully integrated omni-channel platform of 980 Office Depot and OfficeMax retail stores, and through www.officedepot.com. The Veyer division engages in supply chain, distribution, procurement, and global sourcing operations. The Varis division operates tech-enabled B2B indirect procurement marketplace, where buyers and suppliers to transact through the platform's consumer-like buying experience, advanced spend management tools, network of suppliers, and technology capabilities. The company offers its products under various brands, including Office Depot, OfficeMax, and Grand&Toy, as well as others. The ODP Corporation was incorporated in 1986 and is headquartered in Boca Raton, Florida.

About JOANN

JOANN Inc. involved in the sewing and fabrics industry. It serves as a convenient single source for all of the supplies, guidance and inspiration needed to achieve any project or passion. JOANN Inc. is based in HUDSON, Ohio.