Tractor Supply (NASDAQ: TSCO) and Coastal Contacts (NASDAQ:COA) are both cyclical consumer goods & services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Tractor Supply and Coastal Contacts, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tractor Supply 0 14 8 0 2.36
Coastal Contacts 0 0 0 0 N/A

Tractor Supply currently has a consensus target price of $66.22, indicating a potential downside of 12.06%. Given Tractor Supply’s higher possible upside, research analysts plainly believe Tractor Supply is more favorable than Coastal Contacts.

Dividends

Tractor Supply pays an annual dividend of $1.08 per share and has a dividend yield of 1.4%. Coastal Contacts does not pay a dividend. Tractor Supply pays out 32.0% of its earnings in the form of a dividend.

Institutional and Insider Ownership

92.3% of Tractor Supply shares are owned by institutional investors. 1.2% of Tractor Supply shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Tractor Supply and Coastal Contacts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tractor Supply 6.04% 31.25% 15.32%
Coastal Contacts N/A N/A N/A

Valuation & Earnings

This table compares Tractor Supply and Coastal Contacts’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tractor Supply $6.78 billion 1.39 $437.12 million $3.37 22.34
Coastal Contacts N/A N/A N/A ($0.48) -23.52

Tractor Supply has higher revenue and earnings than Coastal Contacts. Coastal Contacts is trading at a lower price-to-earnings ratio than Tractor Supply, indicating that it is currently the more affordable of the two stocks.

Summary

Tractor Supply beats Coastal Contacts on 11 of the 12 factors compared between the two stocks.

Tractor Supply Company Profile

Tractor Supply Company is an operator of rural lifestyle retail stores in the United States. The Company is focused on supplying the needs of recreational farmers and ranchers and others, as well as tradesmen and small businesses. It is engaged in the retail sale of products that support the rural lifestyle. The Company operates retail stores under the names Tractor Supply Company, Del’s Feed & Farm Supply and Petsense, and operates Websites under the names TractorSupply.com and Petsense.com. The Company’s selection of merchandise consists of various product categories, including equine, livestock, pet and small animal products; hardware, truck, towing and tool products; seasonal products, including heating, lawn and garden items, power equipment, gifts and toys; work/recreational clothing and footwear, and maintenance products for agricultural and rural use. Its brands include 4health, JobSmart, Bit & Bridle, Paws & Claws, Blue Mountain, Redstone, Dumor, Equistages and Royal Wing.

Coastal Contacts Company Profile

Coastal Contacts Inc. is an online retailer of eyewear serving markets in North America, Europe and Asia Pacific. The Company operates in two primary product segments: contact lenses and glasses. The Company has approximately nine stores in Canada and Sweden. It sells contact lenses manufactured by multinational companies, such as Vistakon (a division of Johnson and Johnson Vision Care Inc.), Alcon, Inc., Bausch & Lomb Inc. and Coopervision Inc. Its products are offered for sale by telephone, e9 mail, through its Websites, which include www.ClearlyContacts.ca, www.ClearlyContacts.com.au, www.ClearlyContacts.co.nz, www.LensWay.se, www.LensWay.fi, www.LensWay.nl, www.LensWay.no, www.LensWay.co.uk, and www.ContactSan.com or at one of its nine physical retail locations. In April 2014, the Company announced that Essilor International (Compagnie Generale d’Optique), S.A. (Essilor) has indirectly acquired the interest of Coastal.com.

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