Petco Health and Wellness (NASDAQ:WOOF) vs. Kirkland’s (NASDAQ:KIRK) Head-To-Head Review

Petco Health and Wellness (NASDAQ:WOOF) and Kirkland’s (NASDAQ:KIRK) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Petco Health and Wellness and Kirkland’s, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Petco Health and Wellness 0 4 7 0 2.64
Kirkland’s 0 0 2 0 3.00

Petco Health and Wellness presently has a consensus target price of $29.30, indicating a potential upside of 25.37%. Given Petco Health and Wellness’ higher possible upside, analysts clearly believe Petco Health and Wellness is more favorable than Kirkland’s.

Profitability

This table compares Petco Health and Wellness and Kirkland’s’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Petco Health and Wellness N/A N/A N/A
Kirkland’s 4.31% 40.97% 8.97%

Valuation and Earnings

This table compares Petco Health and Wellness and Kirkland’s’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Petco Health and Wellness $4.92 billion 1.08 -$26.48 million $0.23 101.61
Kirkland’s $543.50 million 0.62 $16.64 million N/A N/A

Kirkland’s has lower revenue, but higher earnings than Petco Health and Wellness.

Insider & Institutional Ownership

53.5% of Petco Health and Wellness shares are held by institutional investors. Comparatively, 72.3% of Kirkland’s shares are held by institutional investors. 5.6% of Kirkland’s 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.

Summary

Kirkland’s beats Petco Health and Wellness on 7 of the 12 factors compared between the two stocks.

Petco Health and Wellness Company Profile

Petco Health and Wellness Company, Inc. operates as a retailer of premium pet consumables, supplies, and companion animals and services. The company also offers grooming, in-store and online training, tele-veterinarian, and pet health insurance services, as well as veterinary services through Vetco clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites. As of May 24, 2021, the company operated 1,453 pet care centers and 137 full service veterinary hospitals within pet care centers in the United States and Puerto Rico; and 100 pet care centers in Mexico. The company was founded in 1965 and is headquartered in San Diego, California.

Kirkland’s Company Profile

Kirkland's, Inc. operates as a specialty retailer of home décor in the United States. The company's stores provide various merchandise, including holiday décor, furniture, textiles, ornamental wall décor, decorative accessories, art, mirrors, fragrance and accessories, lamps, artificial floral products, housewares, outdoor living items, gifts, and frames. Its stores also offer an assortment of holiday merchandise in seasonal periods. The company operates its stores under the Kirkland's, Kirkland's Home, Kirkland's Home Outlet, Kirkland's Outlet, and The Kirkland Collection names. As of January 30, 2021, the company operated 373 stores in 35 states, as well as an e-commerce website, www.kirklands.com. Kirkland's, Inc. was founded in 1966 and is headquartered in Brentwood, Tennessee.

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