Container Store (The) (NYSE: TCS) and Ollie’s Bargain Outlet Holdings (NASDAQ:OLLI) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Volatility & Risk

Container Store (The) has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet Holdings has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500.

Valuation and Earnings

This table compares Container Store (The) and Ollie’s Bargain Outlet Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Container Store (The) $825.55 million 0.24 $70.50 million $0.19 21.79
Ollie’s Bargain Outlet Holdings $967.59 million 2.86 $127.79 million $1.15 39.39

Ollie’s Bargain Outlet Holdings has higher revenue and earnings than Container Store (The). Container Store (The) 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 & Insider Ownership

79.1% of Container Store (The) shares are owned by institutional investors. Comparatively, 92.5% of Ollie’s Bargain Outlet Holdings shares are owned by institutional investors. 65.7% of Container Store (The) 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Container Store (The) and Ollie’s Bargain Outlet Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Container Store (The) 1 3 1 0 2.00
Ollie’s Bargain Outlet Holdings 0 4 5 0 2.56

Container Store (The) presently has a consensus price target of $5.38, suggesting a potential upside of 29.83%. Ollie’s Bargain Outlet Holdings has a consensus price target of $46.57, suggesting a potential upside of 2.81%. Given Container Store (The)’s higher probable upside, equities research analysts clearly believe Container Store (The) is more favorable than Ollie’s Bargain Outlet Holdings.

Profitability

This table compares Container Store (The) and Ollie’s Bargain Outlet Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Container Store (The) 1.13% 5.34% 1.49%
Ollie’s Bargain Outlet Holdings 7.60% 10.44% 6.78%

Summary

Ollie’s Bargain Outlet Holdings beats Container Store (The) on 11 of the 14 factors compared between the two stocks.

Container Store (The) Company Profile

The Container Store Group, Inc. is a specialty retailer of storage and organization products. The Company’s segments include The Container Store (TCS), Elfa and Corporate/Other. The Company’s TCS segment consists of its retail stores, Website and call center, as well as its installation and organizational services business. The Company’s Elfa segment includes the manufacturing business that produces the elfa brand products that are sold domestically, exclusively through the TCS segment, as well as throughout Europe. Its Swedish subsidiary, Elfa International AB (Elfa), designs and manufactures component-based shelving and drawer systems and made-to-measure sliding doors. It merchandises over 11,000 products in each of its stores and online. Its stores are organized into various lifestyle departments, which include Bath, Box, Closets, Collections, Containers, Custom Closets, Food Storage, Gift Packaging, Hooks, Kitchen, Laundry, Office, Shelving, Storage, Trash and Travel.

Ollie’s Bargain Outlet Holdings Company Profile

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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