Family Dollar Stores (FDO) versus Burlington Stores (BURL) Financial Review

Family Dollar Stores (NYSE: FDO) and Burlington Stores (NYSE:BURL) are both mid-cap cyclical consumer goods & services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Earnings & Valuation

This table compares Family Dollar Stores and Burlington Stores’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Family Dollar Stores N/A N/A N/A $2.03 39.12
Burlington Stores $5.59 billion 1.53 $215.87 million $3.81 33.00

Burlington Stores has higher revenue and earnings than Family Dollar Stores. Burlington Stores is trading at a lower price-to-earnings ratio than Family Dollar Stores, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Family Dollar Stores and Burlington Stores’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Family Dollar Stores 2.93% 17.69% 8.08%
Burlington Stores 4.61% -374.86% 10.52%

Analyst Recommendations

This is a breakdown of recent recommendations for Family Dollar Stores and Burlington Stores, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Family Dollar Stores 0 0 0 0 N/A
Burlington Stores 0 2 14 0 2.88

Burlington Stores has a consensus target price of $113.27, indicating a potential downside of 9.91%. Given Burlington Stores’ higher possible upside, analysts plainly believe Burlington Stores is more favorable than Family Dollar Stores.

Summary

Burlington Stores beats Family Dollar Stores on 6 of the 8 factors compared between the two stocks.

About Family Dollar Stores

Family Dollar Stores, Inc. operates a chain of retail stores. The Company offers a range of merchandise for the whole family, ranging from household cleaners to name brand foods, from health and beauty aids to toys, and from apparel for every age to home fashions. The Company has approximately 10 distribution centers for its supply chain management. The Company has over 8,000 stores within its approximately 50 state operating area. The Company’s subsidiary, Family Dollar Trucking, Inc., services Family Dollar Stores located in southeastern states with localized operations at the corporate fleet offices. The Company offers various categories of products, such as food and beverages, household products, family apparel, personal beauty and care, pet supplies, home decor, electronics, baby care, automotive, hardware, health and wellness, mobile phones, candy, toys and outdoor. The Company’s other product categories include Halloween, Game Day, Holiday, Valentine’s Day and Easter.

About Burlington Stores

Burlington Stores, Inc. is a retailer of branded apparel. As of January 28, 2017, the Company operated 592 retail stores, inclusive of an Internet store, in 45 states and Puerto Rico. Its product categories include coats, women, men, juniors, girls, boys, shoes, handbags and accessories, beauty and fragrance, home and toys. The product categories for coats include women’s coats and jackets, men’s coats and jackets, juniors coats and jackets, girls coats and jackets, boy’s coats and jackets, baby girl coats and jackets, and baby boy coats and jackets. The product categories for women include active wear, bottoms, coats and jackets, dresses, tops, scrubs, suit and suit separates, sweaters, swimwear and cover-ups. It also includes accessories, beauty and fragrance, handbags, jewelry, shoes and watches. The product categories for men include accessories, active wear, casual button down shirts, dress shirts, men’s coats jackets, fleece, graphic tees, hoodies and sweatshirts, and jeans.

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