L’Oreal (OTCMKTS:LRLCY) vs. Warby Parker (NYSE:WRBY) Head to Head Review

Warby Parker (NYSE:WRBY) and L’Oreal (OTCMKTS:LRLCY) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Valuation & Earnings

This table compares Warby Parker and L’Oreal”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warby Parker	$771.32 million	3.62	-$20.39 million	$0.01	2,644.00
L’Oreal	$47.06 billion	4.88	$6.93 billion	N/A	N/A

L’Oreal has higher revenue and earnings than Warby Parker.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Warby Parker and L’Oreal, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warby Parker	0	8	11	0	2.58
L’Oreal	2	5	2	3	2.50

Warby Parker presently has a consensus target price of $26.75, suggesting a potential upside of 1.17%. Given Warby Parker’s stronger consensus rating and higher probable upside, equities analysts plainly believe Warby Parker is more favorable than L’Oreal.

Insider & Institutional Ownership

93.2% of Warby Parker shares are owned by institutional investors. Comparatively, 0.4% of L’Oreal shares are owned by institutional investors. 18.2% of Warby Parker shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Warby Parker has a beta of 2.06, suggesting that its stock price is 106% more volatile than the S&P 500. Comparatively, L’Oreal has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Profitability

This table compares Warby Parker and L’Oreal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warby Parker	0.08%	1.96%	1.01%
L’Oreal	N/A	N/A	N/A

Summary

Warby Parker beats L’Oreal on 9 of the 13 factors compared between the two stocks.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.

About L’Oreal

L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. The company operates through four divisions: Consumer Products, L'oréal Luxe, Professional Products, and Dermatological Beauty. It offers skincare, make-up, hair colourants, haircare, perfumes, and hygiene products. The company provides its products under the L'Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Stylenanda, Essie, Dark & Lovely, Mixa, Magic Mask, Niley, Lancôme, Yves Saint Laurent, Armani, Kiehl's Since 1851, Helena Rubinstein, Biotherm, Shu Uemura, IT Cosmetics, Ralph Lauren Fragrance, Urban Decay, Mugler, Valentino, Viktor&Rolf, Azzaro, Prada, Cacharel, Maison Margela Fragrance, Diesel, Yue Sai, Atelier Colonge, Carita, Takami, Aesop, L'Oréal Professionnel Paris, Kérastase, Redken, Matrix, Pureology, Pulp Riot, La Roche-Posay, Vichy, CeraVe, SkinCeuticals, and Skinbetter Science brands. It sells its products through distribution channels, such as hair salons, local stores, e-commerce, travel retail, mass market retail, department store perfumeries, pharmacies, drug stores, medi-spas, and free-standing stores. L'Oréal S.A. was founded in 1909 and is headquartered in Clichy, France.