GigaCloud Technology (NASDAQ:GCT – Get Free Report) and RDE (NASDAQ:GIFT – Get Free Report) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.
Profitability
This table compares GigaCloud Technology and RDE’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
GigaCloud Technology | 11.75% | 40.32% | 13.94% |
RDE | N/A | -62.87% | -38.24% |
Institutional & Insider Ownership
34.9% of GigaCloud Technology shares are held by institutional investors. 43.0% of GigaCloud Technology shares are held by insiders. Comparatively, 20.5% of RDE shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
GigaCloud Technology | $703.83 million | 1.21 | $94.11 million | $3.16 | 6.56 |
RDE | $97.01 million | 0.29 | N/A | N/A | N/A |
GigaCloud Technology has higher revenue and earnings than RDE.
Risk and Volatility
GigaCloud Technology has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500. Comparatively, RDE has a beta of -0.72, suggesting that its stock price is 172% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for GigaCloud Technology and RDE, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
GigaCloud Technology | 0 | 0 | 3 | 1 | 3.25 |
RDE | 0 | 0 | 0 | 0 | 0.00 |
GigaCloud Technology currently has a consensus price target of $51.33, indicating a potential upside of 147.75%. Given GigaCloud Technology’s stronger consensus rating and higher probable upside, equities analysts clearly believe GigaCloud Technology is more favorable than RDE.
Summary
GigaCloud Technology beats RDE on 12 of the 12 factors compared between the two stocks.
About GigaCloud Technology
GigaCloud Technology Inc. provides end-to-end B2B ecommerce solutions for large parcel merchandise in the United States and internationally. The company offers GigaCloud Marketplace integrates product discovery to payments to logistics tools into one easy-to-use platform. Its marketplace connects manufacturers primarily in Asia with resellers in the United States, Asia, and Europe to execute cross-border transactions across furniture, home appliance, fitness equipment, and other large parcel categories. The company was formerly known as Oriental Standard Human Resources Holdings Limited and changed its name to GigaCloud Technology Inc. in February 2021. GigaCloud Technology Inc. was incorporated in 2006 and is headquartered in El Monte, California.
About RDE
RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.
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