Critical Contrast: Lovesac (LOVE) & Its Peers

Lovesac (NASDAQ:LOVE) is one of 14 public companies in the “RETAIL – HOME FRN” industry, but how does it contrast to its peers? We will compare Lovesac to related companies based on the strength of its risk, earnings, institutional ownership, dividends, valuation, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Lovesac and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lovesac	0	0	5	0	3.00
Lovesac Competitors	171	1317	2026	38	2.54

Lovesac currently has a consensus target price of $30.40, suggesting a potential upside of 61.10%. As a group, “RETAIL – HOME FRN” companies have a potential upside of 20.62%. Given Lovesac’s stronger consensus rating and higher possible upside, equities analysts clearly believe Lovesac is more favorable than its peers.

Insider & Institutional Ownership

91.3% of Lovesac shares are owned by institutional investors. Comparatively, 67.1% of shares of all “RETAIL – HOME FRN” companies are owned by institutional investors. 12.3% of Lovesac shares are owned by insiders. Comparatively, 5.2% of shares of all “RETAIL – HOME FRN” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Lovesac and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lovesac	1.99%	6.70%	2.74%
Lovesac Competitors	6.52%	33.77%	8.67%

Earnings & Valuation

This table compares Lovesac and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lovesac	$680.63 million	$11.56 million	26.96
Lovesac Competitors	$26.26 billion	$2.36 billion	16.67

Lovesac’s peers have higher revenue and earnings than Lovesac. Lovesac is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Lovesac has a beta of 2.3, meaning that its share price is 130% more volatile than the S&P 500. Comparatively, Lovesac’s peers have a beta of 1.48, meaning that their average share price is 48% more volatile than the S&P 500.

Summary

Lovesac beats its peers on 7 of the 13 factors compared.

Lovesac Company Profile

The Lovesac Company designs, manufactures, and sells furniture. It offers sactionals, such as seats and sides; sacs, including foam beanbag chairs; and other products comprising drink holders, footsac blankets, decorative pillows, fitted seat tables, and ottomans. The company markets its products primarily through www.lovesac.com website, as well as showrooms at top tier malls, lifestyle centers, mobile concierges, kiosks, and street locations in 41 states in the United States; and in store pop-up- shops and shop-in-shops, and barter inventory transactions. The Lovesac Company was founded in 1995 and is based in Stamford, Connecticut.