Head-To-Head Analysis: Lion (OTCMKTS:LIOPF) and Ollie’s Bargain Outlet (NASDAQ:OLLI)

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

Volatility and Risk

Lion has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.

Earnings and Valuation

This table compares Lion and Ollie’s Bargain Outlet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lion	$2.82 billion	1.14	$184.84 million	$0.67	17.18
Ollie’s Bargain Outlet	$2.65 billion	1.80	$240.60 million	$3.90	20.13

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Lion and Ollie’s Bargain Outlet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lion	0	0	0	0	0.00
Ollie’s Bargain Outlet	0	3	13	0	2.81

Ollie’s Bargain Outlet has a consensus price target of $137.29, indicating a potential upside of 74.91%. Given Ollie’s Bargain Outlet’s stronger consensus rating and higher possible upside, analysts clearly believe Ollie’s Bargain Outlet is more favorable than Lion.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lion	6.52%	8.28%	5.57%
Ollie’s Bargain Outlet	9.08%	13.18%	8.43%

Summary

Ollie’s Bargain Outlet beats Lion on 11 of the 12 factors compared between the two stocks.

About Lion

Lion Corporation manufactures and sells consumer and industrial products in Japan and internationally. It operates through three segments: Consumer Products Business, Industrial Products Business, and Overseas Business. The company provides dental and oral care products, including toothpastes, toothbrushes, dental floss, dental rinses, mouthwashes, periodontitis ointments, and denture products; body care products, such as shampoos and conditioners, hand soaps, sanitizers, wet wipes, body washes, skin and acne care products, antiperspirants and deodorants, hair-nourishment treatments, men's care and toiletries products, and foot care products. It offers antipyretic analgesics, eye drops and eye care products, cold medicines, gargles, cold relief products, topical anti-inflammatory analgesics, antidiarrheal and gastrointestinal medicines, health tonic drinks and vitamin supplements, acne and anti-drowsiness medicines, and dermatologic agents. In addition, the company offers fabric care products, such as laundry detergent, delicate detergent, prewash treatment, stain remover, bleach, and fabric softener; clothing care products; household cleaners; kitchen cleanup products comprises dishwashing detergents and antibacterial and deodorizing products; and food preparation products. Further, it provides health and beauty food products consisting of supplements and health tonic drinks; specialty chemicals, and chemical products, include rubber processing and additive agents, mandrel release agents, fatty acid methyl esters, plant-based electrical insulating oils, concrete admixtures, surfactants, and cosmetics ingredients, as well as electro-conductive carbon black and pressure-sensitive adhesives; pet supplies; and gift and special-order products. The company was founded in 1891 and is headquartered in Tokyo, Japan.

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.