Head to Head Survey: Lovesac (NASDAQ:LOVE) and Floor & Decor (NYSE:FND)

Lovesac (NASDAQ:LOVE) and Floor & Decor (NYSE:FND) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.

Valuation and Earnings

This table compares Lovesac and Floor & Decor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lovesac	$680.63 million	0.40	$11.56 million	$0.70	26.50
Floor & Decor	$4.46 billion	1.90	$205.87 million	$1.89	41.61

Floor & Decor has higher revenue and earnings than Lovesac. Lovesac is trading at a lower price-to-earnings ratio than Floor & Decor, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

91.3% of Lovesac shares are held by institutional investors. 12.3% of Lovesac shares are held by company insiders. Comparatively, 2.1% of Floor & Decor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Lovesac and Floor & Decor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lovesac	0	0	5	0	3.00
Floor & Decor	2	8	5	0	2.20

Lovesac currently has a consensus price target of $30.40, indicating a potential upside of 63.88%. Floor & Decor has a consensus price target of $90.33, indicating a potential upside of 14.87%. Given Lovesac’s stronger consensus rating and higher probable upside, analysts clearly believe Lovesac is more favorable than Floor & Decor.

Profitability

This table compares Lovesac and Floor & Decor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lovesac	1.99%	6.70%	2.74%
Floor & Decor	4.53%	9.32%	3.95%

Volatility & Risk

Lovesac has a beta of 2.24, suggesting that its stock price is 124% more volatile than the S&P 500. Comparatively, Floor & Decor has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.

Summary

Floor & Decor beats Lovesac on 8 of the 13 factors compared between the two stocks.

About Lovesac

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.

About Floor & Decor

Floor & Decor Holdings, Inc. engages in the retail of hard surface flooring and related accessories. It provides wood, stone, and flooring products. Its products include vinyl, laminate, and tiles with materials installation for living rooms, kitchen, bathrooms, and walls. The company was founded by George Vincent West in 2000 and is headquartered in Atlanta, GA.