Comparing GigaCloud Technology (NASDAQ:GCT) and Onion Global (NYSE:OG)

Onion Global (NYSE:OG) and GigaCloud Technology (NASDAQ:GCT) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Risk and Volatility

Onion Global has a beta of -3.42, suggesting that its stock price is 442% less volatile than the S&P 500. Comparatively, GigaCloud Technology has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Onion Global and GigaCloud Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onion Global	0	0	0	0	N/A
GigaCloud Technology	0	0	2	0	3.00

GigaCloud Technology has a consensus target price of $52.00, suggesting a potential upside of 71.17%. Given GigaCloud Technology’s higher probable upside, analysts clearly believe GigaCloud Technology is more favorable than Onion Global.

Valuation and Earnings

This table compares Onion Global and GigaCloud Technology’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Onion Global	$2.04 billion	0.01	-$55.90 million	N/A	N/A
GigaCloud Technology	$703.83 million	1.76	$94.11 million	$2.57	11.82

GigaCloud Technology has lower revenue, but higher earnings than Onion Global.

Institutional & Insider Ownership

2.6% of Onion Global shares are held by institutional investors. Comparatively, 34.9% of GigaCloud Technology shares are held by institutional investors. 50.9% of Onion Global shares are held by insiders. Comparatively, 43.0% of GigaCloud Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Onion Global and GigaCloud Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Onion Global	N/A	N/A	N/A
GigaCloud Technology	12.74%	41.24%	16.05%

Summary

GigaCloud Technology beats Onion Global on 9 of the 11 factors compared between the two stocks.

About Onion Global

Onion Global Limited operates a platform that incubates, markets, and distributes fashionable and future brands in China and internationally. Its platform comprises brand partners that offer various categories of lifestyle products, including beauty products, maternal and baby products, food and beverages, fast fashion, and wellness products. The company was incorporated in 2009 and is based in Guangzhou, the People's Republic of China.

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.