Warby Parker (NYSE:WRBY) & Ollie’s Bargain Outlet (NASDAQ:OLLI) Head-To-Head Comparison

Ollie’s Bargain Outlet (NASDAQ:OLLI) and Warby Parker (NYSE:WRBY) are both mid-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Risk & Volatility

Ollie’s Bargain Outlet has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Warby Parker has a beta of 2.05, meaning that its share price is 105% more volatile than the S&P 500.

Insider & Institutional Ownership

93.2% of Warby Parker shares are held by institutional investors. 0.8% of Ollie’s Bargain Outlet shares are held by company insiders. Comparatively, 18.2% of Warby Parker shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Ollie’s Bargain Outlet and Warby Parker”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ollie’s Bargain Outlet	$2.27 billion	3.04	$199.76 million	$3.62	31.08
Warby Parker	$771.32 million	3.50	-$20.39 million	$0.01	2,554.00

Ollie’s Bargain Outlet has higher revenue and earnings than Warby Parker. Ollie’s Bargain Outlet is trading at a lower price-to-earnings ratio than Warby Parker, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Ollie’s Bargain Outlet and Warby Parker, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ollie’s Bargain Outlet	0	4	12	0	2.75
Warby Parker	0	6	11	0	2.65

Ollie’s Bargain Outlet presently has a consensus target price of $142.14, suggesting a potential upside of 26.35%. Warby Parker has a consensus target price of $27.38, suggesting a potential upside of 7.22%. Given Ollie’s Bargain Outlet’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Ollie’s Bargain Outlet is more favorable than Warby Parker.

Profitability

This table compares Ollie’s Bargain Outlet and Warby Parker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ollie’s Bargain Outlet	8.81%	12.86%	8.29%
Warby Parker	0.08%	1.96%	1.01%

Summary

Ollie’s Bargain Outlet beats Warby Parker on 9 of the 14 factors compared between the two stocks.

About Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.