Analyzing WM MORRISON SUP/ADR (MRWSY) and DavidsTea (DTEA)

WM MORRISON SUP/ADR (OTCMKTS:MRWSY) and DavidsTea (NASDAQ:DTEA) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Risk & Volatility

WM MORRISON SUP/ADR has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, DavidsTea has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Dividends

WM MORRISON SUP/ADR pays an annual dividend of $0.43 per share and has a dividend yield of 2.9%. DavidsTea does not pay a dividend. WM MORRISON SUP/ADR pays out 55.1% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares WM MORRISON SUP/ADR and DavidsTea’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WM MORRISON SUP/ADR $22.45 billion 0.31 $404.73 million $0.78 18.88
DavidsTea $173.64 million 0.27 -$22.09 million N/A N/A

WM MORRISON SUP/ADR has higher revenue and earnings than DavidsTea.

Insider & Institutional Ownership

0.3% of WM MORRISON SUP/ADR shares are held by institutional investors. Comparatively, 2.2% of DavidsTea shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for WM MORRISON SUP/ADR and DavidsTea, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WM MORRISON SUP/ADR 0 1 3 0 2.75
DavidsTea 0 1 0 0 2.00

DavidsTea has a consensus target price of $4.00, indicating a potential upside of 120.99%. Given DavidsTea’s higher probable upside, analysts clearly believe DavidsTea is more favorable than WM MORRISON SUP/ADR.

Profitability

This table compares WM MORRISON SUP/ADR and DavidsTea’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WM MORRISON SUP/ADR N/A N/A N/A
DavidsTea -15.64% -1.34% -0.95%

Summary

WM MORRISON SUP/ADR beats DavidsTea on 9 of the 13 factors compared between the two stocks.

WM MORRISON SUP/ADR Company Profile

Wm Morrison Supermarkets PLC operates retail super stores under the Morrisons brand name in the United Kingdom. The company is involved in in-store and online grocery retailing activities. It also manufactures and distributes fresh food, and morning goods and bread; prepares and supplies seafood; processes fresh meat; invests in, develops, and maintains properties; and offers insurance and leasing services, as well as holds pharmaceutical license. The company operates through 491 stores; and 334 petrol filling stations. Wm Morrison Supermarkets PLC was founded in 1899 and is headquartered in Bradford, the United Kingdom.

DavidsTea Company Profile

DAVIDsTEA Inc. operates as a retailer of specialty tea in Canada and the United States. The company offers approximately 135 loose-leaf teas, pre-packaged teas, tea sachets and tea-related gifts, and accessories; and food, as well as tea beverages, such as hot or iced tea, and tea lattes. It provides loose-leaf tea in white, green, oolong, black, pu'erh, mate, rooibos, and herbal tea categories. As of February 03, 2018, the company owned and operated 240 DAVIDsTEA stores. It also provides its products through its Website, davidstea.com. The company was founded in 2008 and is headquartered in Mount-Royal, Canada.

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