Barnes & Noble Education (BNED) versus Ollie’s Bargain Outlet Holdings (OLLI) Financial Review

Barnes & Noble Education (NYSE: BNED) and Ollie’s Bargain Outlet Holdings (NASDAQ:OLLI) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Risk & Volatility

Barnes & Noble Education has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Ollie’s Bargain Outlet Holdings has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500.

Valuation & Earnings

This table compares Barnes & Noble Education and Ollie’s Bargain Outlet Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Barnes & Noble Education $1.87 billion 0.14 $78.29 million ($0.04) -139.72
Ollie’s Bargain Outlet Holdings $967.59 million 2.86 $127.65 million $1.15 39.30

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

Institutional and Insider Ownership

69.1% of Barnes & Noble Education shares are held by institutional investors. Comparatively, 92.9% of Ollie’s Bargain Outlet Holdings shares are held by institutional investors. 3.5% of Barnes & Noble Education shares are held by insiders. Comparatively, 22.3% of Ollie’s Bargain Outlet Holdings shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Barnes & Noble Education and Ollie’s Bargain Outlet Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Barnes & Noble Education 0 0 2 0 3.00
Ollie’s Bargain Outlet Holdings 0 4 5 0 2.56

Barnes & Noble Education currently has a consensus price target of $12.00, indicating a potential upside of 114.67%. Ollie’s Bargain Outlet Holdings has a consensus price target of $46.57, indicating a potential upside of 3.03%. Given Barnes & Noble Education’s stronger consensus rating and higher possible upside, analysts clearly believe Barnes & Noble Education is more favorable than Ollie’s Bargain Outlet Holdings.

Profitability

This table compares Barnes & Noble Education and Ollie’s Bargain Outlet Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Barnes & Noble Education -0.08% -0.12% -0.06%
Ollie’s Bargain Outlet Holdings 7.60% 10.44% 6.78%

Summary

Ollie’s Bargain Outlet Holdings beats Barnes & Noble Education on 9 of the 13 factors compared between the two stocks.

Barnes & Noble Education Company Profile

Barnes & Noble Education, Inc. is a contract operator of bookstores on college and university campuses across the United States and a provider of digital education services. The Company offers a support system, and a retail and digital learning experience for students. Through its subsidiary, Barnes & Noble College Booksellers, LLC, the Company operates approximately 750 campus bookstores and the school-branded e-commerce sites for each store, serving over five million college students and their faculty. The Company offers a set of products and services to help students, faculty and administrators achieve their shared educational and social goals. Its suite of product offerings includes Textbook and Course Material Sales, Textbook and Course Material Rentals, General Merchandise, Trade, Digital Education and Brand Partnerships. The Company also offers other merchandise, such as laptops and other technology products, notebooks, backpacks, school and dormitory supplies and related items.

Ollie’s Bargain Outlet Holdings Company Profile

Ollie’s Bargain Outlet Holdings, Inc. is a retailer of brand name merchandise. The Company offers customers a selection of brand name products, including food, housewares, books and stationery, bed and bath, floor coverings, electronics and toys. Its warehouse format stores feature a range of products, including hardware, personal healthcare, candy, clothing, sporting goods, pet and lawn and garden products. It offers cooking utensils, dishes, appliances, plastic containers, coffee, bottled non-carbonated beverages, coffee, bottled non-carbonated beverages, bedding, towels, curtains, laminate flooring, commercial and residential carpeting, air conditioners, home electronics, cellular accessories, dolls, action figures, puzzles, action figures, puzzles, educational toys, board games, luggage, automotive, seasonal, furniture, summer furniture and lawn and garden. As of January 28, 2017, it had operated 234 stores across 19 contiguous states in the Eastern half of the United States.

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