Citi Trends (NASDAQ: CTRN) and Lands’ End (NASDAQ:LE) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Valuation and Earnings

This table compares Citi Trends and Lands’ End’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Citi Trends $712.38 million 0.40 $35.16 million $0.91 21.75
Lands’ End $1.34 billion 0.29 $39.65 million ($3.55) -3.39

Lands’ End has higher revenue and earnings than Citi Trends. Lands’ End is trading at a lower price-to-earnings ratio than Citi Trends, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

90.8% of Citi Trends shares are owned by institutional investors. Comparatively, 60.5% of Lands’ End shares are owned by institutional investors. 4.6% of Citi Trends shares are owned by insiders. Comparatively, 0.5% of Lands’ End shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Citi Trends pays an annual dividend of $0.32 per share and has a dividend yield of 1.6%. Lands’ End does not pay a dividend. Citi Trends pays out 35.2% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Citi Trends and Lands’ End, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Citi Trends 0 0 0 0 N/A
Lands’ End 0 1 0 0 2.00

Lands’ End has a consensus price target of $15.00, suggesting a potential upside of 24.48%. Given Lands’ End’s higher possible upside, analysts plainly believe Lands’ End is more favorable than Citi Trends.

Profitability

This table compares Citi Trends and Lands’ End’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Citi Trends 1.88% 6.93% 4.69%
Lands’ End -8.48% -0.73% -0.19%

Risk and Volatility

Citi Trends has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Lands’ End has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.

Summary

Citi Trends beats Lands’ End on 9 of the 13 factors compared between the two stocks.

Citi Trends Company Profile

Citi Trends, Inc. is a retailer of urban fashion apparel and accessories. The Company’s segment is retail operations. The Company operates approximately 520 stores in both urban and rural markets in over 30 states. The Company offers products under its brands, such as Citi Steps and Red Ape. The Company’s merchandise includes apparel, accessories and home. Within apparel, the Company offers fashion sportswear for men, women and children, including offerings for newborns, infants, toddlers, boys and girls. Accessories include handbags, jewelry, footwear, belts, intimate apparel, scrubs and sleepwear. The Company’s home merchandise includes decorative home product, functional home product, beauty, books, toys and electronic accessories. The Company sources its merchandise from approximately 1,700 vendors, consisting of domestic manufacturers and importers.

Lands’ End Company Profile

Lands’ End, Inc. (Lands’ End) is a multi-channel retailer of casual clothing, accessories and footwear, as well as home products. The Company operates through two segments: Direct and Retail. The Company offers products through catalogs, online at www.landsend.com. The Direct segment sells products through the Company’s e-commerce Websites, international Websites and direct mail catalogs. The Retail segment sells products and services through Lands’ End Shops at Sears across the United States, the Company’s standalone Lands’ End Inlet stores and international shop-in-shops. The Company’s product categories include Apparel and Non-apparel. The Non-apparel category offers accessories, footwear and home goods. The Company provides embroidery, monogramming, gift wrapping, shipping and other services. In addition, the Company offers sheets and pillowcases, duvet covers and comforters, blankets and throws, mattress pads, towels, rugs and mats, school uniforms and shower curtains.

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