Cracker Barrel Old Country Store (NASDAQ:CBRL) and Lands' End (NASDAQ:LE) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Cracker Barrel Old Country Store and Lands' End, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Cracker Barrel Old Country Store | 1 | 2 | 5 | 0 | 2.50 |
| Lands' End | 0 | 0 | 1 | 0 | 3.00 |
Cracker Barrel Old Country Store currently has a consensus price target of $144.1250, suggesting a potential downside of 9.39%. Lands' End has a consensus price target of $35.00, suggesting a potential upside of 11.57%. Given Lands' End's stronger consensus rating and higher probable upside, analysts clearly believe Lands' End is more favorable than Cracker Barrel Old Country Store.
Insider and Institutional Ownership
74.8% of Cracker Barrel Old Country Store shares are held by institutional investors. Comparatively, 46.9% of Lands' End shares are held by institutional investors. 0.9% of Cracker Barrel Old Country Store shares are held by insiders. Comparatively, 2.2% of Lands' End shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Cracker Barrel Old Country Store and Lands' End's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Cracker Barrel Old Country Store | 3.92% | 3.54% | 0.73% |
| Lands' End | 1.14% | 5.85% | 1.75% |
Volatility and Risk
Cracker Barrel Old Country Store has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Lands' End has a beta of 2.66, indicating that its share price is 166% more volatile than the S&P 500.
Earnings and Valuation
This table compares Cracker Barrel Old Country Store and Lands' End's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Cracker Barrel Old Country Store | $2.52 billion | 1.48 | $-32,470,000.00 | $2.04 | 77.01 |
| Lands' End | $1.45 billion | 0.71 | $19.29 million | $0.60 | 52.32 |
Lands' End has lower revenue, but higher earnings than Cracker Barrel Old Country Store. Lands' End is trading at a lower price-to-earnings ratio than Cracker Barrel Old Country Store, indicating that it is currently the more affordable of the two stocks.
Summary
Lands' End beats Cracker Barrel Old Country Store on 8 of the 14 factors compared between the two stocks.
