Critical Comparison: Wacoal (OTCMKTS:WACLY) and Savers Value Village (NYSE:SVV)

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

Insider and Institutional Ownership

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

Risk and Volatility

Savers Value Village has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Wacoal has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500.

Valuation & Earnings

This table compares Savers Value Village and Wacoal”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Savers Value Village	$1.68 billion	0.83	$22.64 million	$0.14	64.32
Wacoal	$1.14 billion	1.22	$87.18 million	$9.00	14.75

Wacoal has lower revenue, but higher earnings 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.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Savers Value Village	1	2	4	1	2.63
Wacoal	0	0	0	0	0.00

Savers Value Village currently has a consensus price target of $14.14, suggesting a potential upside of 57.06%. Given Savers Value Village’s stronger consensus rating and higher possible upside, equities analysts plainly believe Savers Value Village is more favorable than Wacoal.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Savers Value Village	1.29%	12.47%	2.68%
Wacoal	7.87%	6.55%	4.73%

Summary

Savers Value Village beats Wacoal on 10 of the 15 factors compared between the two stocks.

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.

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.