These are two retailers at quite different stages of...

These are two retailers at quite different stages of development. AX1 is well established and paying a dividend. CCX is in a high growth phase with the expectation that profits will rise sharply. AX1 has 569 stores and 22% of sales online. CCX has 96 stores and 72% of sales online and recent online expansion into USA and UK that are not reflected in recent results. Balance sheets of both are solid however CCX has $80M surplus cash at the moment which I expect will be used on overseas expansion into europe.

So, the safe investment would be to buy AX1 as it has a good track record and more of the same is expected. CCX has to improve profits sharply to justify the current share price. CCX is a much riskier proposition but the rewards are probably a lot greater if they execute.