Head to Head Review: The Michaels Companies (MIK) & Container Store (The) (TCS)
The Michaels Companies (NASDAQ: MIK) and Container Store (The) (NYSE:TCS) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.
Institutional & Insider Ownership
98.4% of The Michaels Companies shares are owned by institutional investors. Comparatively, 79.1% of Container Store (The) shares are owned by institutional investors. 1.5% of The Michaels Companies shares are owned by insiders. Comparatively, 65.7% of Container Store (The) shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a summary of current recommendations for The Michaels Companies and Container Store (The), as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Michaels Companies||0||3||5||0||2.63|
|Container Store (The)||1||3||1||0||2.00|
The Michaels Companies currently has a consensus target price of $24.29, suggesting a potential upside of 11.45%. Container Store (The) has a consensus target price of $5.38, suggesting a potential upside of 29.52%. Given Container Store (The)’s higher possible upside, analysts clearly believe Container Store (The) is more favorable than The Michaels Companies.
Volatility & Risk
The Michaels Companies has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Container Store (The) has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.
This table compares The Michaels Companies and Container Store (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Michaels Companies||7.29%||-22.53%||18.13%|
|Container Store (The)||1.13%||5.34%||1.49%|
Earnings and Valuation
This table compares The Michaels Companies and Container Store (The)’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|The Michaels Companies||$5.21 billion||0.76||$801.02 million||$1.89||11.53|
|Container Store (The)||$825.55 million||0.24||$70.50 million||$0.19||21.84|
The Michaels Companies has higher revenue and earnings than Container Store (The). The Michaels Companies is trading at a lower price-to-earnings ratio than Container Store (The), indicating that it is currently the more affordable of the two stocks.
The Michaels Companies beats Container Store (The) on 9 of the 14 factors compared between the two stocks.
About The Michaels Companies
The Michaels Companies, Inc. (Michaels) is an arts and crafts specialty retailer in North America. The Company’s segments include Michaels-U.S., Michaels-Canada, Aaron Brothers, Pat Catan’s and Darice. As of January 28, 2017, the Company operated 1,223 Michaels retail stores in 49 states and Canada, with approximately 18,000 average square feet of selling space per store. It operated 109 Aaron Brothers stores in nine states, with approximately 5,500 average square feet of selling space and 35 Pat Catan’s stores in five states, with approximately 32,000 average square feet of selling space, as of January 28, 2017. The Company also operates an international wholesale business under the Darice brand name. The Company’s stores purchase custom frames, framing supplies and mats from its framing operation and subsidiary, Artistree, Inc. (Artistree), which consists of a manufacturing facility and four regional processing centers.
About Container Store (The)
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.
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