Savers Value Village (NYSE:SVV) versus Wacoal (OTCMKTS:WACLY) Financial Contrast

Wacoal (OTCMKTS:WACLY) and Savers Value Village (NYSE:SVV) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Insider and Institutional Ownership

98.8% of Savers Value Village shares are held by institutional investors. 0.8% of Wacoal shares are held by company insiders. Comparatively, 3.5% of Savers Value Village shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Wacoal and Savers Value Village’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wacoal	7.87%	6.53%	4.72%
Savers Value Village	1.29%	12.47%	2.68%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Wacoal and Savers Value Village, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wacoal	0	0	0	0	0.00
Savers Value Village	1	2	4	0	2.43

Savers Value Village has a consensus price target of $14.00, suggesting a potential upside of 40.69%. Given Savers Value Village’s stronger consensus rating and higher probable upside, analysts plainly believe Savers Value Village is more favorable than Wacoal.

Earnings and Valuation

This table compares Wacoal and Savers Value Village”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wacoal	$1.14 billion	1.31	$86.62 million	$9.00	15.88
Savers Value Village	$1.68 billion	0.91	$22.64 million	$0.14	71.08

Wacoal has higher earnings, but lower revenue than Savers Value Village. Wacoal is trading at a lower price-to-earnings ratio than Savers Value Village, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Wacoal has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500. Comparatively, Savers Value Village has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Summary

Savers Value Village beats Wacoal on 9 of the 14 factors compared between the two stocks.

About Wacoal

Wacoal Holdings Corp. engages in the manufacturing, wholesale, and retail sale of intimate apparel, outerwear, sportswear, and other textile products and accessories in Japan, Asia, Oceania, the United States, and Europe. The company operates through Wacoal Business (Domestic), Wacoal Business (Overseas), Peach John Business, and Other Businesses segments. It offers intimate apparel mainly women’s foundation wear, lingerie, nightwear and children’s underwear; and outerwear, sportswear, and other textile products and accessories. The company also engages in the restaurant, cultural and service-related businesses; and manufacture and sale of mannequins and fixtures, interior design work, and other textile-related businesses. It offers products through department stores, general merchandisers, and other general retailers in Japan, as well as directly managed retail stores, E-commerce websites, and distributors in Japan and internationally. Wacoal Holdings Corp. was founded in 1946 and is headquartered in Kyoto, Japan.

About Savers Value Village

Savers Value Village, Inc. sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Value Village Boutique, Village des Valeurs, Unique, and 2nd Avenue brands. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners and then processes, selects, prices, merchandises, and sells them in its stores. It serves retail and wholesale customers. The company was formerly known as S-Evergreen Holding LLC and changed its name to Savers Value Village, Inc. in January 2022. Savers Value Village, Inc. was founded in 1954 and is based in Bellevue, Washington.