Financial Analysis: Hour Loop (NASDAQ:HOUR) versus RDE (NASDAQ:GIFT)

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

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%

Risk and Volatility

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RDE	$88.93 million	0.61	N/A	N/A	N/A
Hour Loop	$138.25 million	0.32	-$2.43 million	$0.02	63.00

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

Insider & Institutional Ownership

0.3% of Hour Loop shares are owned by institutional investors. 20.5% of RDE shares are owned by company insiders. Comparatively, 95.0% of Hour Loop shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

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

	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 presently has a consensus target price of $4.00, indicating a potential upside of 115.05%. Given RDE’s stronger consensus rating and higher possible upside, research analysts clearly believe RDE is more favorable 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.