Critical Contrast: Cabela’s (CAB) and Stamps.com (STMP)
Cabela’s (NYSE: CAB) and Stamps.com (NASDAQ:STMP) are both mid-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitabiliy, analyst recommendations, risk and valuation.
This is a breakdown of current ratings and recommmendations for Cabela’s and Stamps.com, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cabela’s presently has a consensus price target of $64.30, suggesting a potential upside of 22.85%. Stamps.com has a consensus price target of $198.00, suggesting a potential downside of 6.27%. Given Cabela’s’ higher possible upside, analysts clearly believe Cabela’s is more favorable than Stamps.com.
Insider and Institutional Ownership
58.2% of Cabela’s shares are held by institutional investors. 21.0% of Cabela’s 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Cabela’s and Stamps.com’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cabela’s||$4.10 billion||0.88||$468.84 million||$1.94||26.98|
|Stamps.com||$419.64 million||8.52||$171.30 million||$6.17||34.24|
Cabela’s has higher revenue and earnings than Stamps.com. Cabela’s is trading at a lower price-to-earnings ratio than Stamps.com, indicating that it is currently the more affordable of the two stocks.
This table compares Cabela’s and Stamps.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Cabela’s has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500. Comparatively, Stamps.com has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500.
Stamps.com beats Cabela’s on 8 of the 14 factors compared between the two stocks.
Cabela’s Company Profile
Cabela’s Incorporated is an omni-channel retailer of hunting, fishing, camping, shooting sports and related outdoor merchandise. The Company offers its customers a selection of national and regional brand products, including its Cabela’s brand. The Company’s segments include Merchandising and Financial Services. The Merchandising segment sells products and services through the Company’s retail stores, its e-commerce Websites (Cabelas.com and Cabelas.ca), and its catalogs. The United States merchandising and Canada merchandising operating segments have been aggregated into its Merchandising segment. The Financial Services segment issues co-branded credit cards, which are available through all of its channels. The Company’s product assortment includes merchandise and equipment for hunting, fishing, marine use, camping, and recreational sport shooting, along with casual and outdoor apparel and footwear, optics, vehicle accessories, and gifts and home furnishings with an outdoor theme.
Stamps.com Company Profile
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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