Stein Mart (NASDAQ: SMRT) and L Brands (NYSE:LTD) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Insider & Institutional Ownership

32.9% of Stein Mart shares are held by institutional investors. 34.7% of Stein Mart shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Stein Mart pays an annual dividend of $0.15 per share and has a dividend yield of 13.2%. L Brands does not pay a dividend. Stein Mart pays out -27.3% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Stein Mart and L Brands, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stein Mart 0 0 0 0 N/A
L Brands 0 0 0 0 N/A

Valuation & Earnings

This table compares Stein Mart and L Brands’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Stein Mart $1.33 billion 0.04 $326,000.00 ($0.55) -2.07
L Brands N/A N/A N/A N/A N/A

Stein Mart has higher revenue and earnings than L Brands.

Profitability

This table compares Stein Mart and L Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stein Mart -1.89% -34.59% -4.43%
L Brands 5.05% N/A 7.13%

Summary

Stein Mart beats L Brands on 5 of the 8 factors compared between the two stocks.

Stein Mart Company Profile

Stein Mart, Inc. is a national retailer offering the fashion merchandise, service and presentation of a department or specialty store. The Company offers apparel for women and men, as well as accessories, shoes and home fashions. The Company’s target customers are women over 45 years old. The Company operates approximately 280 stores in over 30 states and an Internet store. Its stores are located in the Northeast, Midwest, Southeast, Texas and the Southwest. It is concentrated in the Southeast and Texas where over 180 of its stores are located. The Company’s stores offer a range of services, such as merchandise locator service, a Preferred Customer program, co-branded and private label credit card programs, and electronic gift cards. The Company’s merchants purchase products from approximately 1,200 vendors. It leases all of its store locations, generally for approximately 10 years with options to extend the lease term for over two or five year periods.

L Brands Company Profile

L Brands, Inc. operates specialty retail business. The Company is focused on women’s intimate and other apparel, personal care, beauty and home fragrance categories. Its segments include Victoria’s Secret, Bath & Body Works, and Victoria’s Secret and Bath & Body Works International. It sells its merchandise through company-owned specialty retail stores in the United States, Canada, the United Kingdom and Greater China, which are mall-based; through Websites, and through international franchise, license and wholesale partners. It operates in the retail brands, which include Victoria’s Secret, PINK, Bath & Body Works and La Senza. La Senza is a specialty retailer of women’s intimate apparel. It sells its La Senza products at over 120 La Senza stores in Canada. Henri Bendel sells handbags, jewelry and other accessory products through New York and 28 other stores. Mast Global is a merchandise sourcing and production function serving the Company and its international partners.

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