Lulu’s Fashion Lounge (NASDAQ:LVLU – Get Free Report) and Foot Locker (NYSE:FL – Get Free Report) are both small-cap consumer cyclical companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.
Earnings & Valuation
This table compares Lulu’s Fashion Lounge and Foot Locker’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lulu’s Fashion Lounge||$393.34 million||0.21||$3.72 million||($0.33)||-6.21|
|Foot Locker||$8.31 billion||0.21||$342.00 million||$1.54||12.00|
Foot Locker has higher revenue and earnings than Lulu’s Fashion Lounge. Lulu’s Fashion Lounge is trading at a lower price-to-earnings ratio than Foot Locker, indicating that it is currently the more affordable of the two stocks.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lulu’s Fashion Lounge||0||6||2||0||2.25|
Lulu’s Fashion Lounge currently has a consensus target price of $3.94, indicating a potential upside of 92.20%. Foot Locker has a consensus target price of $27.83, indicating a potential upside of 50.57%. Given Lulu’s Fashion Lounge’s stronger consensus rating and higher possible upside, research analysts clearly believe Lulu’s Fashion Lounge is more favorable than Foot Locker.
Institutional and Insider Ownership
51.4% of Lulu’s Fashion Lounge shares are held by institutional investors. 4.9% of Lulu’s Fashion Lounge shares are held by company insiders. Comparatively, 3.2% of Foot Locker shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Lulu’s Fashion Lounge has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500. Comparatively, Foot Locker has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.
This table compares Lulu’s Fashion Lounge and Foot Locker’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lulu’s Fashion Lounge||-3.19%||-19.26%||-7.25%|
Foot Locker beats Lulu’s Fashion Lounge on 10 of the 14 factors compared between the two stocks.
About Lulu’s Fashion Lounge
Lulu's Fashion Lounge Holdings, Inc. operates as an online retailer of women's clothing, shoes, and accessories. The company offers dresses, tops, bottoms, wedding dresses, intimates and sleepwear, swimwear, footwear, and accessories under the Lulus brand. It sells its products through owned media, which primarily consists of its website, mobile app, social media, email, and SMS; and earned and paid media, as well as social media platforms. The company primarily serves Millennial and Gen Z women. Lulu's Fashion Lounge Holdings, Inc. was founded in 1996 and is headquartered in Chico, California.
About Foot Locker
Foot Locker, Inc., through its subsidiaries, operates as a footwear and apparel retailer in North America, Europe, Australia, New Zealand, Asia, and the Middle East. Its brand portfolio includes Foot Locker, a youth culture brand comprising sneakers and apparel; Kids Foot Locker, which offers athletic footwear, apparel, and accessories for children; and Champs Sports that operates as a mall-based specialty athletic footwear and apparel retailer. The company also provides its products under the WSS brand, an athletic-inspired retailer; and atmos brand, a digitally led culturally connected brand featuring sneakers and apparel. It offers its products through various e-commerce sites and mobile apps. The company was formerly known as Venator Group, Inc. and changed its name to Foot Locker, Inc. in November 2001. The company was founded in 1879 and is headquartered in New York, New York.
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