Critical Survey: RDE (NASDAQ:GIFT) & Hour Loop (NASDAQ:HOUR)

RDE (NASDAQ:GIFT) and Hour Loop (NASDAQ:HOUR) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Insider & Institutional Ownership

0.3% of Hour Loop shares are held by institutional investors. 20.5% of RDE shares are held by company insiders. Comparatively, 95.0% of Hour Loop shares are held by company 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.

Risk and Volatility

RDE has a beta of -1.18, indicating that its stock price is 218% less volatile than the S&P 500. Comparatively, Hour Loop has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for RDE and Hour Loop, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RDE	0	0	1	0	3.00
Hour Loop	0	0	0	0	0.00

RDE currently has a consensus price target of $4.00, indicating a potential upside of 118.58%. Given RDE’s stronger consensus rating and higher probable upside, research analysts clearly believe RDE is more favorable than Hour Loop.

Profitability

This table compares RDE and Hour Loop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RDE	N/A	-62.87%	-38.24%
Hour Loop	1.24%	31.06%	7.99%

Earnings & Valuation

This table compares RDE and Hour Loop”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RDE	$88.93 million	0.60	N/A	N/A	N/A
Hour Loop	$138.25 million	0.29	-$2.43 million	$0.02	57.00

RDE has higher earnings, but lower revenue than Hour Loop.

Summary

Hour Loop beats RDE on 7 of the 11 factors compared between the two stocks.

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.

About Hour Loop

Hour Loop, Inc., an online retailer, engages in e-commerce retailing in the United States. The company sells products in various categories, including home/garden décor, toys, kitchenware, apparels, and electronics products. It sells its products through hourloop.com, as well as third-party marketplaces. Hour Loop, Inc. was founded in 2013 and is headquartered in Redmond, Washington.