Boulder Brands (BDBD) versus DavidsTea (DTEA) Financial Analysis

Boulder Brands (NASDAQ: BDBD) and DavidsTea (NASDAQ:DTEA) are both non-cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Boulder Brands and DavidsTea’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Boulder Brands N/A N/A N/A $0.01 N/A
DavidsTea $164.02 million 0.56 -$4.83 million ($0.32) -11.09

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

Insider & Institutional Ownership

11.7% of DavidsTea shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Boulder Brands and DavidsTea’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boulder Brands 0.61% 0.59% 0.50%
DavidsTea -4.79% N/A N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for Boulder Brands and DavidsTea, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boulder Brands 0 0 0 0 N/A
DavidsTea 0 2 0 0 2.00

DavidsTea has a consensus target price of $6.00, suggesting a potential upside of 69.01%.

Summary

Boulder Brands beats DavidsTea on 5 of the 7 factors compared between the two stocks.

About Boulder Brands

Boulder Brands, Inc. is a natural consumer packaged food company. The Company’s health and wellness platform consists of brands that target specific health trends: the Glutino Food Group and Udi’s Healthy Foods, LLC’s Gluten Free brands for gluten free diets; the Earth Balance brand for plant-based diets; the Level Life brand for diabetic diets; EVOL Food branded foods for consumers seeking convenient foods made with pure and simple ingredients, and the Smart Balance brand for heart healthier diets. The Company distributes its products in all retail channels, including natural, grocery, club and mass merchandise. The Company also has a presence in the foodservice and industrial channels. The Company operates in two segments: Natural and Balance. The Natural segment consists of Udi’s, Glutino and EVOL branded products. The Balance segment consists of Smart Balance, Earth Balance and Level Life branded products.

About DavidsTea

DAVIDsTEA Inc. is engaged in the retail and online sale of tea, tea accessories, and food and beverages in Canada and in the United States. The Company’s segments include Canada and the U.S. The Company is a branded retailer of specialty tea, offering approximately 150 loose-leaf teas, pre-packaged teas, tea sachets and tea-related gifts, accessories, and food and beverages primarily through approximately 190 DAVIDsTEA stores, which are operated by the Company, and its Website, davidstea.com. Additionally, the Company offers on-the-go tea beverages in its retail stores. The Company’s tea accessories include tea mugs, travel mugs, teacup sets, teapots, tea makers, kettles, infusers, filters, frothers, tins and spoons. The Company offers beverages range from the standard hot or iced tea to its Tea Lattes. The Company’s different flavors of loose-leaf tea span eight tea categories: white, green, oolong, black, pu’erh, mate, rooibos and herbal tea.

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