Critical Review: At Home Group (HOME) & Appliance Recycling Cntrs of Amer (ARCI)

At Home Group (NYSE:HOME) and Appliance Recycling Cntrs of Amer (NASDAQ:ARCI) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Volatility & Risk

At Home Group has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Appliance Recycling Cntrs of Amer has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Insider and Institutional Ownership

62.1% of At Home Group shares are held by institutional investors. Comparatively, 2.7% of Appliance Recycling Cntrs of Amer shares are held by institutional investors. 7.3% of At Home Group shares are held by insiders. Comparatively, 10.2% of Appliance Recycling Cntrs of Amer shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares At Home Group and Appliance Recycling Cntrs of Amer’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
At Home Group $950.53 million 2.04 $31.81 million $0.76 40.12
Appliance Recycling Cntrs of Amer $41.54 million 0.15 $110,000.00 N/A N/A

At Home Group has higher revenue and earnings than Appliance Recycling Cntrs of Amer.

Analyst Recommendations

This is a summary of current ratings and recommmendations for At Home Group and Appliance Recycling Cntrs of Amer, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
At Home Group 0 0 9 0 3.00
Appliance Recycling Cntrs of Amer 0 0 0 0 N/A

At Home Group currently has a consensus target price of $42.00, suggesting a potential upside of 37.75%. Given At Home Group’s higher possible upside, equities analysts clearly believe At Home Group is more favorable than Appliance Recycling Cntrs of Amer.

Profitability

This table compares At Home Group and Appliance Recycling Cntrs of Amer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
At Home Group 1.95% 6.26% 2.65%
Appliance Recycling Cntrs of Amer N/A -2.06% -1.12%

Summary

At Home Group beats Appliance Recycling Cntrs of Amer on 11 of the 12 factors compared between the two stocks.

At Home Group Company Profile

At Home Group Inc. operates home decor superstores in the United States. The company's stores offer approximately 50,000 items, such as accent furniture, mirrors, patio cushions, rugs and wall arts, artificial flowers and trees, bedding and bath products, candles, garden and outdoor décor, holiday accessories, home organization, pillows, pottery, vases, and window treatments. As of October 10, 2018, it operated approximately 170 stores in 36 states. The company was founded in 1979 and is headquartered in Plano, Texas.

Appliance Recycling Cntrs of Amer Company Profile

Appliance Recycling Centers of America, Inc., together with its subsidiaries, engages in the recycle of household appliances in North America. The company operates in two segments, Recycling and Technology. It engages in collecting, recycling, and installing appliances for utilities and other customers. The company also provides turnkey appliance recycling and replacement services for utilities and other sponsors of energy efficiency programs. Appliance Recycling Centers of America, Inc. was founded in 1976 and is headquartered in Minneapolis, Minnesota.

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