Bitzio (BTZO) versus Cherokee (CHKE) Critical Analysis

Bitzio (OTCMKTS:BTZO) and Cherokee (NASDAQ:CHKE) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Earnings & Valuation

This table compares Bitzio and Cherokee’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bitzio $9.87 million 0.08 $13.25 million N/A N/A
Cherokee $29.36 million 0.31 -$55.98 million ($0.71) -0.92

Bitzio has higher earnings, but lower revenue than Cherokee.

Insider and Institutional Ownership

44.9% of Cherokee shares are held by institutional investors. 9.5% of Bitzio shares are held by insiders. Comparatively, 11.3% of Cherokee shares are held by insiders. 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 Bitzio and Cherokee’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bitzio N/A N/A N/A
Cherokee -197.06% -28.27% -8.12%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Bitzio and Cherokee, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bitzio 0 0 0 0 N/A
Cherokee 0 2 0 0 2.00

Cherokee has a consensus target price of $13.00, indicating a potential upside of 1,900.00%. Given Cherokee’s higher probable upside, analysts plainly believe Cherokee is more favorable than Bitzio.

Summary

Cherokee beats Bitzio on 5 of the 9 factors compared between the two stocks.

About Bitzio

Bitzio, Inc. develops and commercializes clean technologies in the areas of agriculture and lifestyle sectors. The company's portfolio of patented and patent-pending technologies include oil extraction and refining, renewable fuels and chemicals, solar energy and fuels, energy and chemical detection, wearables and consumer products, and others. It licenses technologies to the U.S. ethanol producers. The company also engages in producing and selling activewear and other apparel for women and children. In addition, it distributes Lexi Luu and E-motion branded apparel and accessories. The company was formerly known as Rocky Mountain Fudge Company, Inc. and changed its name to Bitzio, Inc. in June 2011. Bitzio, Inc. was founded in 1990 and is based in Chatsworth, California.

About Cherokee

Cherokee Inc. markets, manages, and licenses fashion and lifestyle brands for apparel, footwear, home products, and accessories worldwide. It owns or licenses Cherokee, Hi-Tec, Magnum, 50 Peaks, Interceptor, Hawk Signature, Tony Hawk, Liz Lange, Completely Me by Liz Lange, Flip Flop Shops, Everyday California, Carole Little, Sideout, Saint Tropez-West, Chorus Line, All That Jazz, Sideout Sport, and other brands. As of February 3, 2018, the company had 54 continuing license agreements covering in approximately 80 countries. Cherokee Inc. was founded in 1988 and is headquartered in Sherman Oaks, California.

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