Critical Survey: EMERGE Commerce (OTC:EMCMF) vs. Solo Brands (NYSE:DTC)

Solo Brands (NYSE:DTC) and EMERGE Commerce (OTC:EMCMF) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of recent ratings for Solo Brands and EMERGE Commerce, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solo Brands	1	6	1	0	2.00
EMERGE Commerce	0	0	0	0	N/A

Solo Brands currently has a consensus target price of $2.93, indicating a potential upside of 138.48%. Given Solo Brands’ higher possible upside, research analysts clearly believe Solo Brands is more favorable than EMERGE Commerce.

Insider & Institutional Ownership

84.5% of Solo Brands shares are owned by institutional investors. 0.7% of Solo Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Solo Brands and EMERGE Commerce”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solo Brands	$494.78 million	0.23	-$111.35 million	($2.18)	-0.56
EMERGE Commerce	N/A	N/A	N/A	N/A	N/A

EMERGE Commerce has lower revenue, but higher earnings than Solo Brands.

Profitability

This table compares Solo Brands and EMERGE Commerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solo Brands	-25.62%	6.02%	3.55%
EMERGE Commerce	N/A	N/A	N/A

Summary

Solo Brands beats EMERGE Commerce on 7 of the 8 factors compared between the two stocks.

About Solo Brands

Solo Brands, Inc. operates a direct-to-consumer platform that offers outdoor and lifestyle branded products in the United States. The company provides camp stoves under the Solo Stove Lite brand name; fire pits under the Solo Stove brand name; kayaks under the Oru brand name; paddle boards under the ISLE brand name; and storage solutions for fire pits, firewood, and other accessories. It also offers swim trunks, casual shorts, sport products, polos, shirts, and lounge products under the Chubbies brand name; consumables, such as color packs, starters, natural charcoal, fuel, pellets, and firewood products; and accessories comprising shelters, shields, roasting sticks, tools, paddles, and pumps under the Solo Stove, Oru, and ISLE brands. Solo Brands, Inc. was founded in 2011 and is headquartered in Grapevine, Texas.

About EMERGE Commerce

Emerge Commerce Ltd. owns and operates a portfolio of e-commerce marketplaces in Canada and the United States. The company's marketplace and subscription e-commerce properties provide pet products, meat/ grocery, and golf products. Its principal operating e-commerce brands include WholesalePet.com, truLOCAL.ca, UnderPar.com, JustGolfStuff.ca, WagJag.com, BeRightBack.ca, BattlBox.com, and CarnivoreClub.co. The company was founded in 2016 and is based in Toronto, Canada.