Ollie’s Bargain Outlet Holdings (NASDAQ: OLLI) and Stamps.com (NASDAQ:STMP) are both mid-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitabiliy, dividends and risk.

Earnings and Valuation

This table compares Ollie’s Bargain Outlet Holdings and Stamps.com’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ollie’s Bargain Outlet Holdings $924.20 million 2.82 $119.57 million $1.06 40.19
Stamps.com $387.51 million 6.36 $153.67 million $5.25 27.70

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.

Institutional and Insider Ownership

95.2% of Ollie’s Bargain Outlet Holdings shares are held by institutional investors. 22.3% of Ollie’s Bargain Outlet Holdings shares are held by company insiders. Comparatively, 11.5% of Stamps.com shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Ollie’s Bargain Outlet Holdings and Stamps.com, as provided 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 0 0 5 0 3.00

Ollie’s Bargain Outlet Holdings currently has a consensus target price of $40.25, suggesting a potential downside of 5.52%. Stamps.com has a consensus target price of $175.75, suggesting a potential upside of 20.83%. Given Stamps.com’s stronger consensus rating and higher possible upside, analysts clearly believe Stamps.com is more favorable than Ollie’s Bargain Outlet Holdings.

Risk and Volatility

Ollie’s Bargain Outlet Holdings has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500. Comparatively, Stamps.com has a beta of 0.02, meaning that its stock price is 98% less volatile than the S&P 500.

Profitability

This table compares Ollie’s Bargain Outlet Holdings and Stamps.com’s 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%
Stamps.com 24.55% 35.30% 21.63%

Summary

Stamps.com beats Ollie’s Bargain Outlet Holdings on 9 of the 14 factors compared between the two stocks.

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.

About Stamps.com

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.

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