Head to Head Review: Solo Brands (NYSE:DTC) vs. Deliveroo (OTCMKTS:DROOF)

Deliveroo (OTCMKTS:DROOF) and Solo Brands (NYSE:DTC) are both consumer cyclical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for Deliveroo and Solo Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deliveroo	0	1	2	0	2.67
Solo Brands	1	6	1	0	2.00

Solo Brands has a consensus target price of $2.93, suggesting a potential upside of 134.67%. Given Solo Brands’ higher possible upside, analysts clearly believe Solo Brands is more favorable than Deliveroo.

Profitability

This table compares Deliveroo and Solo Brands’ net margins, return on equity and return on assets.

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

Institutional & Insider 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Deliveroo and Solo Brands”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deliveroo	N/A	N/A	N/A	N/A	N/A
Solo Brands	$492.52 million	0.23	-$111.35 million	($2.18)	-0.57

Deliveroo has higher earnings, but lower revenue than Solo Brands.

Summary

Solo Brands beats Deliveroo on 6 of the 9 factors compared between the two stocks.

About Deliveroo

Deliveroo plc, a holding company, operates an online food delivery platform in the United Kingdom, Ireland, France, Italy, Belgium, Hong Kong, Singapore, the United Arab Emirates, Kuwait, and Qatar. The company connects local consumers, shops, riders and restaurants, and grocery partners. Deliveroo plc was founded in 2013 and is based in London, the United Kingdom.

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.