Critical Review: GigaCloud Technology (NASDAQ:GCT) and RDE (NASDAQ:GIFT)

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

Risk and Volatility

RDE has a beta of -0.72, meaning that its share price is 172% less volatile than the S&P 500. Comparatively, GigaCloud Technology has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500.

Insider & Institutional Ownership

34.9% of GigaCloud Technology shares are held by institutional investors. 20.5% of RDE shares are held by insiders. Comparatively, 43.0% of GigaCloud Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares RDE and GigaCloud Technology”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RDE	$97.01 million	0.29	N/A	N/A	N/A
GigaCloud Technology	$703.83 million	1.21	$94.11 million	$3.16	6.56

GigaCloud Technology has higher revenue and earnings than RDE.

Analyst Recommendations

This is a breakdown of current ratings for RDE and GigaCloud Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RDE	0	0	0	0	0.00
GigaCloud Technology	0	0	3	1	3.25

GigaCloud Technology has a consensus target price of $51.33, indicating a potential upside of 147.75%. Given GigaCloud Technology’s stronger consensus rating and higher probable upside, analysts clearly believe GigaCloud Technology is more favorable than RDE.

Profitability

This table compares RDE and GigaCloud Technology’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%
GigaCloud Technology	11.75%	40.32%	13.94%

Summary

GigaCloud Technology beats RDE on 12 of the 12 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 GigaCloud Technology

GigaCloud Technology Inc. provides end-to-end B2B ecommerce solutions for large parcel merchandise in the United States and internationally. The company offers GigaCloud Marketplace integrates product discovery to payments to logistics tools into one easy-to-use platform. Its marketplace connects manufacturers primarily in Asia with resellers in the United States, Asia, and Europe to execute cross-border transactions across furniture, home appliance, fitness equipment, and other large parcel categories. The company was formerly known as Oriental Standard Human Resources Holdings Limited and changed its name to GigaCloud Technology Inc. in February 2021. GigaCloud Technology Inc. was incorporated in 2006 and is headquartered in El Monte, California.