Canadian Tire (OTCMKTS:CDNTF) vs. RH (NYSE:RH) Financial Survey

RH (NYSE:RH) and Canadian Tire (OTCMKTS:CDNTF) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for RH and Canadian Tire, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RH	1	8	6	0	2.33
Canadian Tire	0	0	0	0	N/A

RH presently has a consensus price target of $322.54, suggesting a potential downside of 2.28%. Given RH’s higher probable upside, equities analysts clearly believe RH is more favorable than Canadian Tire.

Institutional and Insider Ownership

90.2% of RH shares are owned by institutional investors. Comparatively, 2.2% of Canadian Tire shares are owned by institutional investors. 28.1% of RH shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares RH and Canadian Tire’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RH	1.13%	-11.29%	0.77%
Canadian Tire	N/A	N/A	N/A

Valuation and Earnings

This table compares RH and Canadian Tire”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RH	$3.05 billion	2.00	$127.56 million	$3.61	91.43
Canadian Tire	N/A	N/A	N/A	$7.48	21.70

RH has higher revenue and earnings than Canadian Tire. Canadian Tire is trading at a lower price-to-earnings ratio than RH, indicating that it is currently the more affordable of the two stocks.

Summary

RH beats Canadian Tire on 8 of the 10 factors compared between the two stocks.

About RH

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.

About Canadian Tire

Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. It operates in three segments: Retail, CT REIT, and Financial Services. The Retail segment retails automotive maintenance products and accessories, parts, and tires, as well as automotive services and roadside assistance; electrical, hardware, home environment, paint, plumbing, and tool products; cleaning, food & drink, home décor, home essentials, home organization, kitchen, and pet care products; camping, exercise, hockey, hunting, fishing, seasonal recreation, and team sports and golf products; and backyard living, backyard fun, cycling, gardening, outdoor tools, seasonal, and toy products. This segment offers its products under the Canadian Tire, Canadian Tire Gas, Pro Hockey Life, Mark's, PartSource, Helly Hansen, Party City, and SportChek brand names. This segment also participates in loyalty programs, as well as sells its products online. The CT REIT segment operates as a closed-end real estate investment trust that holds a portfolio of properties comprising Canadian Tire stores, Canadian Tire anchored retail developments, industrial properties, mixed-use commercial property, and development properties. The Financial Services segment provides consumer credit cards, in-store financing, insurance products, and retail and broker deposits; and savings accounts and guaranteed investment certificates. Canadian Tire Corporation, Limited was founded in 1922 and is headquartered in Toronto, Canada.