Reviewing Brand House Collective (NASDAQ:TBHC) & Lowe’s Companies (NYSE:LOW)

Lowe’s Companies (NYSE:LOW) and Brand House Collective (NASDAQ:TBHC) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Valuation and Earnings

This table compares Lowe’s Companies and Brand House Collective”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lowe’s Companies	$83.24 billion	1.70	$6.96 billion	$12.07	20.87
Brand House Collective	$441.36 million	0.08	-$23.13 million	($1.73)	-0.86

Lowe’s Companies has higher revenue and earnings than Brand House Collective. Brand House Collective is trading at a lower price-to-earnings ratio than Lowe’s Companies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lowe’s Companies and Brand House Collective’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lowe’s Companies	8.22%	-49.12%	15.07%
Brand House Collective	-6.06%	N/A	-8.47%

Risk and Volatility

Lowe’s Companies has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Brand House Collective has a beta of 2.11, suggesting that its share price is 111% more volatile than the S&P 500.

Insider and Institutional Ownership

74.1% of Lowe’s Companies shares are held by institutional investors. Comparatively, 15.4% of Brand House Collective shares are held by institutional investors. 0.3% of Lowe’s Companies shares are held by company insiders. Comparatively, 3.0% of Brand House Collective shares are held 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Lowe’s Companies and Brand House Collective, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lowe’s Companies	1	9	16	0	2.58
Brand House Collective	0	0	1	1	3.50

Lowe’s Companies currently has a consensus target price of $270.68, suggesting a potential upside of 7.47%. Brand House Collective has a consensus target price of $4.50, suggesting a potential upside of 202.01%. Given Brand House Collective’s stronger consensus rating and higher possible upside, analysts plainly believe Brand House Collective is more favorable than Lowe’s Companies.

Summary

Lowe’s Companies beats Brand House Collective on 9 of the 15 factors compared between the two stocks.

About Lowe’s Companies

Lowe’s Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical. In addition, the company offers installation services through independent contractors in various product categories; and extended protection plans and repair services. It sells its national brand-name merchandise and private brand products to professional customers, homeowners, renters, businesses, and government. The company also sells its products through Lowes.com website; and through mobile applications. Lowe’s Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.

About Brand House Collective

Kirkland’s, Inc. operates as a specialty retailer of home décor and furnishings in the United States. Its stores provide various merchandise, including holiday décor, furniture, textiles, ornamental wall décor, decorative accessories, art, mirrors, home fragrance, lighting, floral, housewares, outdoor, and gifts. The company operates its stores under the Kirkland’s, Kirkland’s Home, Kirkland’s Home Outlet, Kirkland’s Outlet, and Kirkland Collection names. It also operates an e-commerce website, kirklands.com. The company was founded in 1966 and is headquartered in Brentwood, Tennessee.