Critical Review: Delivery Hero (OTCMKTS:DLVHF) and Solo Brands (NYSE:DTC)

Solo Brands (NYSE:DTC) and Delivery Hero (OTCMKTS:DLVHF) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Earnings and Valuation

This table compares Solo Brands and Delivery Hero”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solo Brands	$492.52 million	0.23	-$111.35 million	($2.18)	-0.56
Delivery Hero	N/A	N/A	N/A	N/A	N/A

Delivery Hero has lower revenue, but higher earnings than Solo Brands.

Analyst Recommendations

This is a summary of current recommendations for Solo Brands and Delivery Hero, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solo Brands	1	6	1	0	2.00
Delivery Hero	0	1	0	1	3.00

Solo Brands presently has a consensus price target of $2.93, indicating a potential upside of 138.48%. Given Solo Brands’ higher probable upside, analysts clearly believe Solo Brands is more favorable than Delivery Hero.

Insider & Institutional Ownership

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

Profitability

This table compares Solo Brands and Delivery Hero’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%
Delivery Hero	N/A	N/A	N/A

Summary

Solo Brands beats Delivery Hero on 7 of the 10 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 Delivery Hero

Delivery Hero SE offers online food ordering and delivery services. It operates approximately in 70 countries in Asia, the Middle East, Africa, Europe, and Latin America. The company was founded in 2011 and is headquartered in Berlin, Germany.