Comparing Ollie’s Bargain Outlet (NASDAQ:OLLI) & RH (NYSE:RH)

Ollie’s Bargain Outlet (NASDAQ:OLLI) and RH (NYSE:RH) are both mid-cap consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Risk and Volatility

Ollie’s Bargain Outlet has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, RH has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500.

Institutional and Insider Ownership

90.2% of RH shares are held by institutional investors. 0.8% of Ollie’s Bargain Outlet shares are held by insiders. Comparatively, 26.9% of RH shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Ollie’s Bargain Outlet and RH, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ollie’s Bargain Outlet	0	3	14	0	2.82
RH	4	9	7	0	2.15

Ollie’s Bargain Outlet presently has a consensus target price of $124.00, indicating a potential upside of 71.44%. RH has a consensus target price of $172.53, indicating a potential upside of 6.27%. Given Ollie’s Bargain Outlet’s stronger consensus rating and higher possible upside, analysts plainly believe Ollie’s Bargain Outlet is more favorable than RH.

Valuation and Earnings

This table compares Ollie’s Bargain Outlet and RH”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ollie’s Bargain Outlet	$2.65 billion	1.65	$240.60 million	$4.05	17.86
RH	$3.44 billion	0.89	$124.79 million	$5.18	31.34

Ollie’s Bargain Outlet has higher earnings, but lower revenue than RH. Ollie’s Bargain Outlet is trading at a lower price-to-earnings ratio than RH, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ollie’s Bargain Outlet and RH’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ollie’s Bargain Outlet	9.13%	13.43%	8.56%
RH	3.01%	423.79%	1.76%

About Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.

About RH

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.