BUB v JAT - A Comparison, page-2

First 2 Last

Share
Profile

Follow
chris23231

1,565 Posts.

240

19/02/21

12:40

Post #: 51154889
Share

Originally posted by thisfool369: ↑

Disclaimer:
I have posted this on both BUB and JAT boards in exactly the same format. My interest is in creating a discussion of the difference between the two companies, which seem to be at similar points in their journey with comparable revenue numbers. It would be great to hear people's thoughts about the reasoning behind the price differential between the two companies. Here are my thoughts, and as usual, this is not financial advice, because I'm just a fool on the Internet.

Observations:- BUB much healthier debt ratio, though balance sheet is a little "fluffed up" with high level of intangibles.
- JAT is a more efficient business with a better operating margin, though this is counterbalanced by high levels of debt.
- Both companies growing at similar rates, with JAT showing signs of more rapid growth, likely at the expense of taking on large debt levels
- BUB is operating in a market with far less risk in terms of global conditions, though has a far smaller market in which it operates.
- JAT growth leverage could see it crash and burn, or soar very high, depending on market conditions.
- Both companies show solid revenue growth over the last 5 years and continue to expand their product lines.
- While it's clear JAT brings more risk to the table, BUB's valuation at 10 times JAT's is noteworthy.

Keen to hear your thoughts. GLTAH.

Expand

Bubs has already captured Australian market and is struggling to gain good traction in China. Jat has close to 0 market in aus and is increasing sales in China. Jat has a lot more runway before it runs out of opportunities than bubs. Also jat expanding in other areas like vmeat and cosmetics as well as other countries. Its not a fair comparison as jat is far better

JAT Price at posting: 3.3¢ Sentiment: Buy Disclosure: Held
15 Upvote

0 Great analysis

Reply

Top Stories

MM1

Geochemical work at Newington picks up gold and copper anomalies for Midas

PEC

Perpetual sniffs TREOs beyond 4000ppm at Raptor play in Brazil

BGL

Bellevue aims for 45% production increase by FY 2028, announces $150M placement

Capital raisings wrap: Brainchip, Ovanti, Lake and VHM

TRP

Tissue Repairs soars nearly 32% on TGA approval for wound healing gel