Costco Wholesale (NASDAQ:COST) and Ollie's Bargain Outlet (NASDAQ:OLLI) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Profitability
This table compares Costco Wholesale and Ollie's Bargain Outlet's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Costco Wholesale | 2.50% | 24.50% | 7.73% |
Ollie's Bargain Outlet | 13.31% | 16.64% | 11.00% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Costco Wholesale and Ollie's Bargain Outlet, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Costco Wholesale | 0 | 11 | 19 | 0 | 2.63 |
Ollie's Bargain Outlet | 4 | 5 | 6 | 0 | 2.13 |
Costco Wholesale currently has a consensus price target of $386.64, indicating a potential upside of 21.19%. Ollie's Bargain Outlet has a consensus price target of $93.1333, indicating a potential upside of 13.36%. Given Costco Wholesale's stronger consensus rating and higher possible upside, equities research analysts plainly believe Costco Wholesale is more favorable than Ollie's Bargain Outlet.
Risk and Volatility
Costco Wholesale has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Ollie's Bargain Outlet has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.
Valuation & Earnings
This table compares Costco Wholesale and Ollie's Bargain Outlet's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Costco Wholesale | $166.76 billion | 0.85 | $4.00 billion | $8.85 | 36.05 |
Ollie's Bargain Outlet | $1.41 billion | 3.82 | $141.13 million | $1.96 | 41.92 |
Costco Wholesale has higher revenue and earnings than Ollie's Bargain Outlet. Costco Wholesale is trading at a lower price-to-earnings ratio than Ollie's Bargain Outlet, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
67.2% of Costco Wholesale shares are owned by institutional investors. 0.2% of Costco Wholesale shares are owned by company insiders. Comparatively, 16.4% of Ollie's Bargain Outlet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Costco Wholesale beats Ollie's Bargain Outlet on 9 of the 14 factors compared between the two stocks.