Financial Review: Dunelm Group (OTCMKTS:DNLMY) and SIGNA Sports United (NYSE:SSU)

Dunelm Group (OTCMKTS:DNLMY) and SIGNA Sports United (NYSE:SSU) are both consumer cyclical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares Dunelm Group and SIGNA Sports United”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dunelm Group	$2.15 billion	1.33	$182.96 million	N/A	N/A
SIGNA Sports United	$1.06 billion	0.00	-$613.33 million	N/A	N/A

Dunelm Group has higher revenue and earnings than SIGNA Sports United.

Profitability

This table compares Dunelm Group and SIGNA Sports United’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dunelm Group	N/A	N/A	N/A
SIGNA Sports United	N/A	N/A	N/A

Institutional & Insider Ownership

11.6% of SIGNA Sports United shares are held by institutional investors. 0.4% of SIGNA Sports United shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Dunelm Group and SIGNA Sports United, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dunelm Group	0	0	0	3	4.00
SIGNA Sports United	0	0	0	0	0.00

Given SIGNA Sports United’s higher possible upside, analysts clearly believe SIGNA Sports United is more favorable than Dunelm Group.

Volatility and Risk

Dunelm Group has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, SIGNA Sports United has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

About Dunelm Group

Dunelm Group plc retails homewares in the United Kingdom. The company offers furniture and beds products, which include bedroom, living room, dining room, and other furniture, as well as bed and mattresses, and sofas and armchairs; bedding products comprising bed linen, dorma, baby and kid’s bedding, and duvets, pillows, and protectors; curtains and rugs; and venetian, roller, roman, vertical, and made to measure blinds. It also offers range of home decor products, such as wall art and décor, mirrors, clocks, ornaments, pictures and frames, candle and home fragrance, flower and plants, vases, decorative trays and bowls, kid’s decor, plant pots, cushions, throws, draught excluders, doorstops, bean bags, and letterbox flowers, as well as housewarming, engagement, anniversary, and wedding gifts; lighting products, including ceiling and wall lights, table and desk lamps, floor lamps, and pendants and lamp shades; and paint, wallpaper, DIY and upcycling, and haberdashery products. In addition, the company provides kitchen and utility products comprising cooking, dining, electrical, utility, and pet products; bathroom accessories, as well as furniture and decor products; storage products, such as travel and luggage, home, clothes, and kitchen storage; kids bedroom, furniture, nursery, and accessories products; and Christmas products and winter essentials. It operates through a network of stores, as well as sells its products through an online store at dunelm.com. Dunelm Group plc was founded in 1979 and is based in Syston, the United Kingdom.

About SIGNA Sports United

SIGNA Sports United N.V. operates online sports web shops in the European Union, Switzerland, Norway, the United Kingdom, and the United States. Its product categories include bike, tennis/racket sports, outdoor, and team sports and athleisure. The company is headquartered in Berlin, Germany.