The Lovesac (NASDAQ:LOVE) and Cracker Barrel Old Country Store (NASDAQ:CBRL) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.
Earnings and Valuation
This table compares The Lovesac and Cracker Barrel Old Country Store's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| The Lovesac | $233.38 million | 4.41 | $-15,200,000.00 | ($1.04) | -65.94 |
| Cracker Barrel Old Country Store | $2.52 billion | 1.61 | $-32,470,000.00 | $2.04 | 83.98 |
The Lovesac has higher earnings, but lower revenue than Cracker Barrel Old Country Store. The Lovesac 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.
Risk and Volatility
The Lovesac has a beta of 2.58, suggesting that its share price is 158% more volatile than the S&P 500. Comparatively, Cracker Barrel Old Country Store has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.
Insider & Institutional Ownership
84.2% of The Lovesac shares are owned by institutional investors. Comparatively, 74.8% of Cracker Barrel Old Country Store shares are owned by institutional investors. 31.3% of The Lovesac shares are owned by company insiders. Comparatively, 0.9% of Cracker Barrel Old Country Store shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares The Lovesac and Cracker Barrel Old Country Store's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| The Lovesac | -0.55% | -1.84% | -1.18% |
| Cracker Barrel Old Country Store | 3.92% | 3.54% | 0.73% |
Analyst Ratings
This is a summary of current ratings for The Lovesac and Cracker Barrel Old Country Store, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| The Lovesac | 0 | 0 | 7 | 0 | 3.00 |
| Cracker Barrel Old Country Store | 1 | 4 | 4 | 0 | 2.33 |
The Lovesac currently has a consensus price target of $80.00, indicating a potential upside of 16.65%. Cracker Barrel Old Country Store has a consensus price target of $157.30, indicating a potential downside of 8.18%. Given The Lovesac's stronger consensus rating and higher probable upside, research analysts plainly believe The Lovesac is more favorable than Cracker Barrel Old Country Store.
Summary
The Lovesac beats Cracker Barrel Old Country Store on 8 of the 14 factors compared between the two stocks.
