Ascena Retail Group (NASDAQ: ASNA) and Lands’ End (NASDAQ:LE) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.
Risk & Volatility
Ascena Retail Group has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500. Comparatively, Lands’ End has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.
This table compares Ascena Retail Group and Lands’ End’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ascena Retail Group||-15.25%||2.96%||0.94%|
Earnings and Valuation
This table compares Ascena Retail Group and Lands’ End’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ascena Retail Group||$6.80 billion||0.06||$581.10 million||($5.33)||-0.41|
|Lands’ End||$1.33 billion||0.32||$39.91 million||($3.49)||-3.80|
Ascena Retail Group has higher revenue and earnings than Lands’ End. Lands’ End is trading at a lower price-to-earnings ratio than Ascena Retail Group, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Ascena Retail Group and Lands’ End, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ascena Retail Group||1||7||0||0||1.88|
Ascena Retail Group presently has a consensus price target of $4.50, suggesting a potential upside of 105.48%. Lands’ End has a consensus price target of $15.00, suggesting a potential upside of 13.21%. Given Ascena Retail Group’s higher probable upside, analysts clearly believe Ascena Retail Group is more favorable than Lands’ End.
Institutional and Insider Ownership
96.2% of Ascena Retail Group shares are owned by institutional investors. Comparatively, 62.8% of Lands’ End shares are owned by institutional investors. 8.6% of Ascena Retail Group shares are owned by insiders. Comparatively, 0.5% of Lands’ End shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Ascena Retail Group beats Lands’ End on 8 of the 12 factors compared between the two stocks.
About Ascena Retail Group
Ascena Retail Group, Inc. is a specialty retailer of apparel for women and tween girls. The Company operates through six segments: ANN, Justice, Lane Bryant, maurices, dressbarn and Catherines. The ANN segment offers feminine classics and fashion choices, sold primarily under the Ann Taylor and LOFT brands. The Justice segment offers apparel to girls who are aged 6 to 12. The Lane Bryant segment offers apparel to female customers in plus-sizes 14-28. The maurices segment offers women’s casual clothing, career wear, dressy apparel, active wear and accessories. The dressbarn segment consists of the specialty retail, outlet and e-commerce operations of the dressbarn brand. The Catherines segment offers classic apparel and accessories to female customers for wear-to-work and casual lifestyles. As of July 30, 2016, the Company operated approximately 4,900 stores in 49 United States’ states, the District of Columbia, Canada and Puerto Rico.
About Lands’ End
Lands’ End, Inc. (Lands’ End) is a multi-channel retailer of casual clothing, accessories and footwear, as well as home products. The Company operates through two segments: Direct and Retail. The Company offers products through catalogs, online at www.landsend.com. The Direct segment sells products through the Company’s e-commerce Websites, international Websites and direct mail catalogs. The Retail segment sells products and services through Lands’ End Shops at Sears across the United States, the Company’s standalone Lands’ End Inlet stores and international shop-in-shops. The Company’s product categories include Apparel and Non-apparel. The Non-apparel category offers accessories, footwear and home goods. The Company provides embroidery, monogramming, gift wrapping, shipping and other services. In addition, the Company offers sheets and pillowcases, duvet covers and comforters, blankets and throws, mattress pads, towels, rugs and mats, school uniforms and shower curtains.
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