Stamps.com (NASDAQ: STMP) and Ollie’s Bargain Outlet Holdings (NASDAQ:OLLI) are both mid-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.
This is a summary of recent ratings for Stamps.com and Ollie’s Bargain Outlet Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ollie’s Bargain Outlet Holdings||0||3||3||0||2.50|
Stamps.com currently has a consensus target price of $198.00, suggesting a potential downside of 5.87%. Ollie’s Bargain Outlet Holdings has a consensus target price of $40.25, suggesting a potential downside of 9.24%. Given Stamps.com’s stronger consensus rating and higher possible upside, analysts plainly believe Stamps.com is more favorable than Ollie’s Bargain Outlet Holdings.
Insider and Institutional Ownership
92.9% of Ollie’s Bargain Outlet Holdings shares are owned by institutional investors. 11.5% of Stamps.com shares are owned by company insiders. Comparatively, 22.3% of Ollie’s Bargain Outlet Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Stamps.com and Ollie’s Bargain Outlet Holdings’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Stamps.com||$419.64 million||8.48||$171.47 million||$6.17||34.09|
|Ollie’s Bargain Outlet Holdings||$924.20 million||2.93||$119.57 million||$1.06||41.84|
Stamps.com has higher revenue, but lower earnings than Ollie’s Bargain Outlet Holdings. Stamps.com is trading at a lower price-to-earnings ratio than Ollie’s Bargain Outlet Holdings, indicating that it is currently the more affordable of the two stocks.
This table compares Stamps.com and Ollie’s Bargain Outlet Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ollie’s Bargain Outlet Holdings||7.25%||10.11%||6.39%|
Risk and Volatility
Stamps.com has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet Holdings has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.
Stamps.com beats Ollie’s Bargain Outlet Holdings on 9 of the 14 factors compared between the two stocks.
Stamps.com Inc. is a provider of Internet-based mailing and shipping solutions in the United States. The Company offers mailing and shipping products and services to its customers under the Stamps.com, Endicia, ShipStation, ShipWorks and ShippingEasy brands. It operates through the Internet Mailing and Shipping Services segment. Under the Stamps.com and Endicia brands, customers use its United States Postal Service (USPS) only solutions to mail and ship a range of mail pieces and packages through the USPS. USPS mailing and shipping solutions enable users to print electronic postage directly onto envelopes, plain paper, or labels using only a standard personal computer, printer and Internet connection. The Company offers USPS mailing and shipping services, multi-carrier shipping services, mailing and shipping services, branded insurance and international postage solutions. The Company offers customized postage under the PhotoStamps and PictureItPostage brand names.
About Ollie’s Bargain Outlet Holdings
Ollie’s Bargain Outlet Holdings, Inc. is a retailer of brand name merchandise. The Company offers customers a selection of brand name products, including food, housewares, books and stationery, bed and bath, floor coverings, electronics and toys. Its warehouse format stores feature a range of products, including hardware, personal healthcare, candy, clothing, sporting goods, pet and lawn and garden products. It offers cooking utensils, dishes, appliances, plastic containers, coffee, bottled non-carbonated beverages, coffee, bottled non-carbonated beverages, bedding, towels, curtains, laminate flooring, commercial and residential carpeting, air conditioners, home electronics, cellular accessories, dolls, action figures, puzzles, action figures, puzzles, educational toys, board games, luggage, automotive, seasonal, furniture, summer furniture and lawn and garden. As of January 28, 2017, it had operated 234 stores across 19 contiguous states in the Eastern half of the United States.
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