Canadian Tire (OTCMKTS:CDNAF) and QVC Group (NASDAQ:QVCGA) Financial Analysis
by Mitch Edgeman · The Markets DailyQVC Group (NASDAQ:QVCGA – Get Free Report) and Canadian Tire (OTCMKTS:CDNAF – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings for QVC Group and Canadian Tire, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| QVC Group | 1 | 0 | 0 | 0 | 1.00 |
| Canadian Tire | 0 | 4 | 1 | 0 | 2.20 |
Canadian Tire has a consensus target price of $205.00, indicating a potential upside of 51.90%. Given Canadian Tire’s stronger consensus rating and higher probable upside, analysts clearly believe Canadian Tire is more favorable than QVC Group.
Insider and Institutional Ownership
64.1% of QVC Group shares are owned by institutional investors. 12.3% of QVC Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares QVC Group and Canadian Tire”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| QVC Group | $9.23 billion | 0.00 | -$2.44 billion | ($460.35) | -0.00 |
| Canadian Tire | $11.68 billion | 0.61 | $376.67 million | $7.53 | 17.92 |
Canadian Tire has higher revenue and earnings than QVC Group. QVC Group is trading at a lower price-to-earnings ratio than Canadian Tire, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares QVC Group and Canadian Tire’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| QVC Group | -26.42% | -1.02% | 0.32% |
| Canadian Tire | 4.09% | 10.84% | 3.38% |
Summary
Canadian Tire beats QVC Group on 11 of the 13 factors compared between the two stocks.
About QVC Group
QVC Group, Inc. engages in the business of video and online commerce industries. It operates through the following segments: QxH, QVC International and CBI. The QxH segment markets and sells a wide variety of consumer products in the U.S., primarily by means of its televised shopping programs and via the Internet through their websites and mobile applications. The QVC International segment markets and sells a wide variety of consumer products in several foreign countries, primarily by means of its televised shopping programs and via the Internet through its international websites and mobile applications. The CBI segment consists of a portfolio of aspirational home and apparel brands in the U.S. that sell merchandise through brick-and-mortar retail locations as well as via the Internet through their websites. The company was founded on March 28, 1991 and is headquartered in Englewood, CO.
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.