FGI Industries (NASDAQ:FGI – Get Free Report) and Lovesac (NASDAQ:LOVE – Get Free Report) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.
Institutional and Insider Ownership
91.3% of Lovesac shares are owned by institutional investors. 5.0% of FGI Industries shares are owned by insiders. Comparatively, 12.3% of Lovesac shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares FGI Industries and Lovesac’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FGI Industries | -1.06% | 1.73% | 0.53% |
| Lovesac | 1.99% | 6.70% | 2.74% |
Risk and Volatility
Analyst Recommendations
This is a breakdown of current ratings for FGI Industries and Lovesac, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FGI Industries | 0 | 0 | 0 | 0 | 0.00 |
| Lovesac | 0 | 0 | 5 | 0 | 3.00 |
Lovesac has a consensus target price of $30.40, suggesting a potential upside of 49.68%. Given Lovesac’s stronger consensus rating and higher probable upside, analysts clearly believe Lovesac is more favorable than FGI Industries.
Valuation and Earnings
This table compares FGI Industries and Lovesac”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FGI Industries | $131.82 million | 0.06 | -$1.20 million | ($0.15) | -5.06 |
| Lovesac | $680.63 million | 0.43 | $11.56 million | $0.70 | 29.01 |
Lovesac has higher revenue and earnings than FGI Industries. FGI Industries is trading at a lower price-to-earnings ratio than Lovesac, indicating that it is currently the more affordable of the two stocks.
Summary
Lovesac beats FGI Industries on 14 of the 14 factors compared between the two stocks.
About FGI Industries
FGI Industries ltd. supplies kitchen and bath products in the United States, Canada, Europe, and internationally. The company sells sanitaryware products, such as toilets, sinks, pedestals, and toilet seats; wood and wood-substitute furniture for bathrooms, including vanities, mirrors, laundry, medicine cabinets, and other storage systems; shower systems; and customer kitchen cabinetry and other accessory items under the Foremost, avenue, contrac, Jetcoat, rosenberg, and Covered Bridge Cabinetry brand names. It sells its products through home center retailers, online retailers, distributors, and independent dealers. The company was incorporated in 2021 and is headquartered in East Hanover, New Jersey. FGI Industries Ltd. is a subsidiary of Foremost Groups Ltd.
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.
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