Critical Analysis: Acer (OTCMKTS:ACEYY) and Cricut (NASDAQ:CRCT)

Cricut (NASDAQ:CRCT) and Acer (OTCMKTS:ACEYY) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Profitability

This table compares Cricut and Acer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cricut	9.16%	13.18%	9.26%
Acer	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Cricut and Acer, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cricut	2	2	0	0	1.50
Acer	0	0	0	0	N/A

Cricut presently has a consensus target price of $5.09, indicating a potential downside of 26.59%. Given Cricut’s higher probable upside, analysts plainly believe Cricut is more favorable than Acer.

Earnings and Valuation

This table compares Cricut and Acer”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cricut	$741.49 million	2.03	$53.64 million	$0.29	23.90
Acer	N/A	N/A	N/A	($11.67)	-0.51

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

Insider & Institutional Ownership

19.6% of Cricut shares are owned by institutional investors. 18.0% of Cricut shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Cricut beats Acer on 9 of the 9 factors compared between the two stocks.

About Cricut

Cricut, Inc. engages in the design, marketing, and distribution of a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates through three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations. Its connected machines include Cricut Joy family for personalization, organization, and customization; Cricut Explore family for cutting, writing, and scoring; Cricut Maker family for cutting, writing, scoring, and adding decorative effects to various materials, such as paper, vinyl, iron-on vinyl, pens, and others; and Cricut Venture for cutting, writing, and scoring large-format projects at professional speeds. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps comprising Cricut Joy App, Design Space, and other design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, hand tools, machine replacement tools and blades, and project materials. The company offers its products through its third-party brick-and-mortar and online retail partners; and its website cricut.com, as well as through a network of distributors. It operates in the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand, and Western Europe, as well as the Middle East, Latin America, South Africa, and Asia. The company was formerly known as Provo Craft & Novelty, Inc. and changed its name to Cricut, Inc. in March 2018. The company was incorporated in 1969 and is headquartered in South Jordan, Utah.

About Acer

Acer Incorporated researches, designs, markets, and sells personal computers (PCs), information technology (IT) products, and tablet products in the United States, Taiwan, and internationally. The company offers notebook and desktop PCs; monitors; projectors; gaming products; esports platforms; gadgets and apparel; servers; cloud and E-business and services; and commercial and digital signage, cyber security and datacenter, smart cities, e-mobility, home appliances, AI-assisted medical, energy storage, and recruitment and staffing solutions. It also provides electronic information, insurance captive, cloud technology, and system integration; and intelligent transportation and electronic ticketing programs and services. In addition, the company manages, repairs, and maintains IT products; researches, designs, and develops Internet of Things platform; sells communication products, computers, apparatus system, and peripheral equipment; develops Internet of Beings and cloud technology; trades in and distributes polymer; and integrates cloud technology, software, and hardware. Further, it researches, develops, and sells batteries and smart bicycle speedometers; sells commercial and cloud application software and services; and designs, develops, and sells computer software and hardware, as well as provides B2B virtual reality services. Additionally, the company engages in solar optronics business; trading and distribution of synthetic and natural rubber, plastic resins, and related fillers; agency of video game console and peripherals; hotel management services; and human resources and project services, as well as provides intelligent medical examination and data interpretation analysis, medical big data, and health management and related information exchange services. It also operates and maintains eSports platform; sells health supplements; and manufactures lithium batteries. Acer Incorporated was incorporated in 1976 and is headquartered in New Taipei City, Taiwan.