a.k.a. Brands (NYSE:AKA) & Li Ning (OTCMKTS:LNNGY) Critical Comparison

Li Ning (OTCMKTS:LNNGY) and a.k.a. Brands (NYSE:AKA) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Earnings & Valuation

This table compares Li Ning and a.k.a. Brands”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Li Ning	$3.99 billion	1.44	$419.10 million	N/A	N/A
a.k.a. Brands	$574.70 million	0.18	-$25.99 million	($2.51)	-3.84

Li Ning has higher revenue and earnings than a.k.a. Brands.

Analyst Recommendations

This is a summary of recent ratings and target prices for Li Ning and a.k.a. Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Li Ning	1	0	0	0	1.00
a.k.a. Brands	1	1	1	0	2.00

a.k.a. Brands has a consensus target price of $20.00, suggesting a potential upside of 107.68%. Given a.k.a. Brands’ stronger consensus rating and higher possible upside, analysts plainly believe a.k.a. Brands is more favorable than Li Ning.

Volatility & Risk

Li Ning has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, a.k.a. Brands has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.

Profitability

This table compares Li Ning and a.k.a. Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Li Ning	N/A	N/A	N/A
a.k.a. Brands	-4.48%	-21.06%	-6.33%

Insider and Institutional Ownership

55.4% of a.k.a. Brands shares are owned by institutional investors. 17.6% of a.k.a. Brands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

About Li Ning

Li Ning Company Limited, a sports brand company, engages in the research and development, design, manufacture, marketing, distribution, and retail of sporting goods in the People’s Republic of China. The company offers sporting goods, including professional and leisure footwear, apparel, equipment, and accessories under the LI-NING brand. It also develops, manufactures, markets, distributes, and/or sells outdoor sports products under the AIGLE brand; table tennis products under the Double Happiness brand name; fashionable fitness products for dance and yoga under the Danskin brand; and badminton products under the Kason brand name. The company also provides brand licensing, administrative, and property management services. It operates conventional stores, flagship stores, China LI-NING stores, LI-NING 1990 stores, factory outlets, and multi-brand stores under the LI-NING brand. The company was founded in 1990 and is headquartered in Beijing, the People’s Republic of China.

About a.k.a. Brands

a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. The company offers streetwear apparel, dresses, tops, bottoms, shoes, headwear, and accessories through its online stores under the Princess Polly, Petal & Pup, Culture Kings, and mnml brands. It also operates physical stores under the Culture Kings brand. The company was founded in 2018 and is headquartered in San Francisco, California.