Aterian (NASDAQ:ATER) & Deer Consumer Products (OTCMKTS:DEER) Critical Contrast

Aterian (NASDAQ:ATER) and Deer Consumer Products (OTCMKTS:DEER) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Insider and Institutional Ownership

21.9% of Aterian shares are held by institutional investors. 7.4% of Aterian shares are held by company insiders. Comparatively, 30.2% of Deer Consumer Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Aterian and Deer Consumer Products, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aterian 0 0 3 0 3.00
Deer Consumer Products 0 0 0 0 N/A

Aterian presently has a consensus target price of $43.00, suggesting a potential upside of 170.27%. Given Aterian’s higher possible upside, research analysts clearly believe Aterian is more favorable than Deer Consumer Products.

Profitability

This table compares Aterian and Deer Consumer Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aterian -62.75% -108.98% -19.09%
Deer Consumer Products N/A N/A N/A

Risk and Volatility

Aterian has a beta of 4.26, meaning that its stock price is 326% more volatile than the S&P 500. Comparatively, Deer Consumer Products has a beta of 60.14, meaning that its stock price is 5,914% more volatile than the S&P 500.

Valuation & Earnings

This table compares Aterian and Deer Consumer Products’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aterian $185.70 million 2.64 -$63.13 million ($1.50) -10.65
Deer Consumer Products N/A N/A N/A N/A N/A

Deer Consumer Products has lower revenue, but higher earnings than Aterian.

Summary

Deer Consumer Products beats Aterian on 5 of the 9 factors compared between the two stocks.

Aterian Company Profile

Aterian, Inc., together with its subsidiaries, operates as a technology-enabled consumer products company in North America and internationally. It provides Artificial Intelligence Mohawk e-Commerce Engine, a software technology platform, which uses machine learning, natural language processing, and data analytics to design, develop, market, and sell products. The company's platform provides home and kitchen appliances; kitchenware, heating, cooling, and health and beauty products; and air quality appliances, such as dehumidifiers, humidifiers, and air conditioners under the hOmeLabs, Vremi, Xtava, RIF6, Aussie Health, Holonix, Truweo, Mueller, Pursteam, Pohl and Schmitt, and Spiralizer brands. It also sells essential oils. The company primarily serves individual online consumers through Amazon and other e-commerce platforms, as well as through its owned and operated websites and other marketplaces. The company was formerly known as Mohawk Group Holdings, Inc. and changes its name to Aterian, Inc. in April 2021. Aterian, Inc. was founded in 2014 and is headquartered in New York, New York.

Deer Consumer Products Company Profile

Deer Consumer Products, Inc., through its subsidiaries, engages in the design, manufacture, and sale of small home and kitchen electronic appliances. It offers blenders, juicers, soy milk makers, food processors, popcorn makers, meat grinders, coffee machines, and hot water kettles primarily under the Deer brand name, as well as under one store brand for retailer's private label programs. Deer Consumer Products also offers humidifiers and dehumidifiers, rice cookers, and toasters. The company sells its products to consumer product companies internationally; and to retail stores through agents in the People's Republic of China. It also operates as an original design manufacturer and original equipment manufacturer. The company was formerly known as Tag Events Corp. and changed its name to Deer Consumer Products, Inc. in September 2008. Deer Consumer Products, Inc. is based in Shenzhen, the People's Republic of China.

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