Introduction

Temple and Webster (ASX:TPW) and Cettire (ASX:CTT) have been the two leading retail stocks on the ASX for the past couple of years. I thought it would be interesting to do a side-by-side comparison to see what we can learn and see if one looks better than the other.

Firstly this is how each company describes themselves:

https://www.templeandwebster.com.au/

https://www.cettire.com/au

Share price performance

Let’s look at their charts. Both seemed to peak in around October 2022 and now both seem to be returning to test those peaks.

Incredibly similar.

Next let’s look the performance of both over the last 12 months.(Temple and Webster (ASX:TPW) first, Cettire (ASX:CTT) 2nd)

Again quite similar.

Fundamentals

Let’s look at some other metrics:

Metric	ASX:TPW	ASX:CTT
Market Cap	$1.4B	$1.8B
Latest Revenue per share on a trailing 12 month basis	$3.63	$1.53
Latest Revenue per share on a trailing 12 month basis growth	10%	40%
Operating cash flow per share on a trailing 12 month basis	33.1c	17c
Price to sales ratio	3.4	3.0
EBTIDA Margins	3.7%	7.0%
Forecast EBTIDA Growth in 2024	-23%	51%
Cash / Debt	$114.2m / $0	$99.8M / $0

Final thoughts: Temple and Webster (ASX:TPW) vs Cettire (ASX:CTT)

It’s remarkable how similar these two companies are. I think it’s safe to say though, on these metrics, if you like Temple and Webster (ASX:TPW) then you should love Cettire (ASX:CTT). Cettire (ASX:CTT) has a slightly lower valuation and is growing faster and forecast to continue doing so.

 

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Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.

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The Vaneck MSCI International Quality ETF ( ASX:QUAL) has been a great investment for a number of years. Multi-Award-Winning too!

https://www.vaneck.com.au/etf/equity/qual/snapshot/

As the chart shows, not only has it appreciated in value it has also paid an annual dividend along the way.

ASX:QUAL gives exposure to “quality international companies listed on exchanges in developed markets around the world” excluding Australia.

How and what stocks are chosen?

Vaneck are happy to tell you how they select the stocks:

They then adjust their results based on the market cap weight in the parent index.

That’s the key. Big stocks that have been growing well. Hello FANG / Big 7!

Yep it’s all there in the weightings:

Switzerland and Netherlands … ok.

Top 8 holdings are all US based.

Performance

You can see the performance of these holdings here.

Generally speaking, I would say this portfolio has done well because of the market cap weighting factor more than the quality factor. Big stocks drive indexes and funds like this help to drive big stocks and vice versa. A classic virtuous circle.

No matter what you think about ETF’s, this has clearly been one of the best for almost 10 years now. For Australians it’s been a great way to gain exposure to some big themes that simply aren’t present on our market.

You can see why so many listed fund managers are in a structural decline. They can keep comparing their performance to low benchmarks and tell themselves this is appropriate but investors are smarter than that and are moving their money where they can get the best returns. They’re moving their money into ETF’s like ASX:QUAL which now has a market cap of nearly $4.5B.

 

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Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.

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This Duratec (ASX:DUR) analysis was originally posted on February 1, 2024. This is an updated version from 29/3/2024.

About

Duratec Limited (ASX:DUR) is an Australian company specializing in the assessment, protection, remediation, and refurbishment of various assets and infrastructure, particularly focusing on steel and concrete. Founded in 2010, Duratec operates through several segments, including Defence, Mining & Industrial, Building & Facade, and Energy. The company provides a wide range of services such as asset protection, building refurbishment, infrastructure upgrades, recladding, durability engineering, specialist access systems, construction, and spatial integration. Duratec leverages in-house assessment technologies, including 3D capture and modeling with predictive analysis tools, to deliver solutions across industries like defence, mining, building, and energy. The company has grown its presence across all Australian states and territories, working with clients in sectors that have different business cycles, aiming for sustainable growth and shareholder value by maintaining high standards of corporate governance and ethical conduct.

https://www.duratec.com.au/

Growth rankings

Present and predicted future growth is in the top of half of the 500 stocks I track. The latest results have been stronger than what analysts predict to come. That could easily change though.

Valuation rankings

Duratec (ASX:DUR) looks relatively inexpensive on a the three valuation measures I look at:

Quality rankings

By almost all measures of quality that I give weight to, Duratec (ASX:DUR)  is a high quality to company. Only EBITDA Margin is lower than I like to see. Encouragingly, it has been increasing though.

Fundamentals

Duratec (ASX:DUR) Price chart

Duratec (ASX:DUR) Final Thought

The share price rose from around 30c in mid-June 2022 to around $1.70 at the start of this year. Since then, the stock has been falling. Growth levels look solid, valuation doesn’t appear stretched and quality looks to be improving. Revenue growth has been rapid and consistent and earnings have followed. The only concern has been falling operating cash-flows. In the past, I have seen examples where the cash-flows have signalled signs of problems ahead of earnings. Caution is justified right now. However, any sign of improvement in this metric along with continued improvement in revenues and earnings in their next update, should see a resumption to the uptrend in the share price.

Note: This is a live chart. The technical analysis in this report should be considered up to the date of this report.

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Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.

Duratec (ASX:DUR) Analysis

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