Party City Holdco (NYSE: PRTY) and Stamps.com (NASDAQ:STMP) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Valuation & Earnings

This table compares Party City Holdco and Stamps.com’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Party City Holdco $2.33 billion 0.60 $364.88 million $0.96 12.24
Stamps.com $419.64 million 8.87 $171.47 million $6.17 35.69

Party City Holdco has higher revenue and earnings than Stamps.com. Party City Holdco is trading at a lower price-to-earnings ratio than Stamps.com, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Party City Holdco and Stamps.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Party City Holdco 4.97% 13.97% 4.09%
Stamps.com 26.66% 34.46% 21.63%

Risk and Volatility

Party City Holdco has a beta of 2.66, suggesting that its stock price is 166% more volatile than the S&P 500. Comparatively, Stamps.com has a beta of -0.04, suggesting that its stock price is 104% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Party City Holdco and Stamps.com, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Party City Holdco 0 0 3 0 3.00
Stamps.com 0 0 6 0 3.00

Party City Holdco presently has a consensus price target of $17.50, suggesting a potential upside of 48.94%. Stamps.com has a consensus price target of $210.00, suggesting a potential downside of 4.63%. Given Party City Holdco’s higher probable upside, research analysts clearly believe Party City Holdco is more favorable than Stamps.com.

Summary

Stamps.com beats Party City Holdco on 7 of the 11 factors compared between the two stocks.

Party City Holdco Company Profile

Party City Holdco Inc. is a holding company with no operating assets or operations. As of December 31, 2016, the Company owned PC Nextco Holdings, LLC (PC Nextco), which owned PC Intermediate Holdings, Inc. (PC Intermediate). As of December 31, 2016, PC Intermediate owned Party City Holdings Inc. (PCHI). PCHI or its direct or indirect subsidiaries conduct all of its operating businesses. The Company operates through two segments: Retail and Wholesale. Its retail operations generate revenue primarily through the sale of its Amscan, Designware, Anagram and Costumes USA party supplies through its Party City stores, Halloween City stores and PartyCity.com. Its wholesale revenues are generated from the sale of party goods for all occasions, including paper and plastic tableware, accessories and novelties, costumes, metallic and latex balloons and stationery.

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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