Contrasting Lovesac (NASDAQ:LOVE) and Frasers Group (OTCMKTS:SDIPF)

Frasers Group (OTCMKTS:SDIPF) and Lovesac (NASDAQ:LOVE) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Profitability

This table compares Frasers Group and Lovesac’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frasers Group	N/A	N/A	N/A
Lovesac	0.55%	1.88%	0.75%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Frasers Group and Lovesac, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frasers Group	1	0	0	0	1.00
Lovesac	1	0	4	0	2.60

Lovesac has a consensus price target of $22.67, indicating a potential upside of 31.63%. Given Lovesac’s stronger consensus rating and higher possible upside, analysts plainly believe Lovesac is more favorable than Frasers Group.

Earnings & Valuation

This table compares Frasers Group and Lovesac”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frasers Group	N/A	N/A	N/A	$0.30	29.90
Lovesac	$696.94 million	0.36	$4.07 million	$0.26	66.23

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

Institutional and Insider Ownership

22.5% of Frasers Group shares are owned by institutional investors. Comparatively, 91.3% of Lovesac shares are owned by institutional investors. 7.8% of Lovesac shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Lovesac beats Frasers Group on 10 of the 11 factors compared between the two stocks.

About Frasers Group

Frasers Group Plc, together with its subsidiaries, retails sports and leisure clothing, footwear, equipment, accessories, and apparel through department stores, shops, and online in the United Kingdom, Europe, the United States, Asia, Oceania, and internationally. The company operates through four segments: UK Sports Retail, Premium Lifestyle, International Retail, and Wholesale & Licensing. It is also involved in the wholesale distribution and sale of sports and leisure clothing, footwear, equipment, and apparel; and licensing activities. The company offers its products under its own and third party brands, which include Slazenger, Everlast, Lonsdale, Karrimor, 18montrose, Evans Cycles, Flannels, Frasers, Game, House of Fraser, Jack Wills, Sofa.com, Sports Direct, USC, Cruise, and van mildert. The company was formerly known as Sports Direct International plc and changed its name to Frasers Group Plc in December 2019. Frasers Group Plc was founded in 1982 and is headquartered in Shirebrook, the United Kingdom. Frasers Group plc operates as a subsidiary of MASH Holdings Limited.

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.