Analyzing Lovesac (NASDAQ:LOVE) and Brand House Collective (NASDAQ:TBHC)

Brand House Collective (NASDAQ:TBHC) and Lovesac (NASDAQ:LOVE) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Volatility & Risk

Brand House Collective has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500. Comparatively, Lovesac has a beta of 2.38, indicating that its share price is 138% more volatile than the S&P 500.

Earnings & Valuation

This table compares Brand House Collective and Lovesac”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brand House Collective	$441.36 million	0.08	-$23.13 million	($1.52)	-1.03
Lovesac	$680.63 million	0.32	$11.56 million	$0.63	23.90

Lovesac has higher revenue and earnings than Brand House Collective. Brand House Collective is trading at a lower price-to-earnings ratio than Lovesac, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for Brand House Collective and Lovesac, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brand House Collective	1	0	1	1	2.67
Lovesac	1	0	5	0	2.67

Brand House Collective presently has a consensus target price of $7.00, suggesting a potential upside of 345.86%. Lovesac has a consensus target price of $30.00, suggesting a potential upside of 99.20%. Given Brand House Collective’s higher possible upside, analysts clearly believe Brand House Collective is more favorable than Lovesac.

Institutional and Insider Ownership

15.4% of Brand House Collective shares are owned by institutional investors. Comparatively, 91.3% of Lovesac shares are owned by institutional investors. 3.0% of Brand House Collective shares are owned by company insiders. Comparatively, 12.5% of Lovesac shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Brand House Collective and Lovesac’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brand House Collective	-7.56%	N/A	-10.22%
Lovesac	1.87%	6.35%	2.57%

Summary

Lovesac beats Brand House Collective on 12 of the 14 factors compared between the two stocks.

About Brand House Collective

Kirkland’s, Inc. operates as a specialty retailer of home décor and furnishings in the United States. Its stores provide various merchandise, including holiday décor, furniture, textiles, ornamental wall décor, decorative accessories, art, mirrors, home fragrance, lighting, floral, housewares, outdoor, and gifts. The company operates its stores under the Kirkland’s, Kirkland’s Home, Kirkland’s Home Outlet, Kirkland’s Outlet, and Kirkland Collection names. It also operates an e-commerce website, kirklands.com. The company was founded in 1966 and is headquartered in Brentwood, Tennessee.

About Lovesac

The Lovesac Company designs, manufactures, and sells furniture. It offers sactionals, such as seats and sides; sacs, including foam beanbag chairs; and other products comprising drink holders, footsac blankets, decorative pillows, fitted seat tables, and ottomans. The company markets its products primarily through www.lovesac.com website, as well as showrooms at top tier malls, lifestyle centers, mobile concierges, kiosks, and street locations in 41 states in the United States; and in store pop-up- shops and shop-in-shops, and barter inventory transactions. The Lovesac Company was founded in 1995 and is based in Stamford, Connecticut.