EVINE Live (NASDAQ: EVLV) and Rent-A-Center (NASDAQ:RCII) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.
Rent-A-Center pays an annual dividend of $0.32 per share and has a dividend yield of 2.6%. EVINE Live does not pay a dividend. Rent-A-Center pays out -10.9% of its earnings in the form of a dividend.
This table compares EVINE Live and Rent-A-Center’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
36.5% of EVINE Live shares are held by institutional investors. 4.2% of EVINE Live shares are held by insiders. Comparatively, 3.4% of Rent-A-Center shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
EVINE Live has a beta of 3.36, suggesting that its share price is 236% more volatile than the S&P 500. Comparatively, Rent-A-Center has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.
Valuation & Earnings
This table compares EVINE Live and Rent-A-Center’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|EVINE Live||$647.45 million||0.10||$12.89 million||($0.11)||-9.27|
|Rent-A-Center||$2.80 billion||0.24||$104.70 million||($2.94)||-4.22|
Rent-A-Center has higher revenue and earnings than EVINE Live. EVINE Live is trading at a lower price-to-earnings ratio than Rent-A-Center, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for EVINE Live and Rent-A-Center, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
EVINE Live currently has a consensus target price of $2.50, suggesting a potential upside of 145.10%. Rent-A-Center has a consensus target price of $11.50, suggesting a potential downside of 7.26%. Given EVINE Live’s stronger consensus rating and higher possible upside, research analysts clearly believe EVINE Live is more favorable than Rent-A-Center.
Rent-A-Center beats EVINE Live on 8 of the 15 factors compared between the two stocks.
EVINE Live Company Profile
EVINE Live Inc. is a digital commerce company. The Company operates through the digital commerce retailing segment. The Company offers a mix of brands directly to consumers in an engaging and informative shopping experience through television (TV), online and mobile devices. It operates an around the clock television shopping network, EVINE Live, which is distributed primarily on cable and satellite systems, through which the Company offers brand products in the categories of jewelry and watches, home and consumer electronics, beauty, and fashion and accessories. In addition, it offers a collection of men’s and women’s watches from classic to modern designs. It features home decor, bed and bath textiles, cookware, kitchen electrics, mattresses, tabletop accessories and home furnishings. Its beauty assortment features a range of skincare, cosmetics, hair care, and bath and body products. It also offers a range of apparel, outerwear, intimates, handbags, accessories and footwear.
Rent-A-Center Company Profile
Rent-A-Center, Inc. is a rent-to-own operator in North America. The Company provides an opportunity to obtain ownership of products, such as consumer electronics, appliances, computers (including tablets), smartphones and furniture (including accessories), under rental purchase agreements. The Company operates in four segments: Core U.S., Acceptance Now, Mexico, and Franchising. As of December 31, 2016, the Company operated over 2,463 Company-owned stores in the United States, Canada and Puerto Rico. The Company’s Mexico segment consists of the Company-owned rent-to-own stores in Mexico. As of December 31, 2016, the Company operated 130 stores in this segment. Its Franchising segment engages in the sale of rental merchandise to its franchisees. As of December 31, 2016, the Company’s Franchising segment franchised 229 stores in 31 states operating under the Rent-A-Center (152 stores), ColorTyme (39 stores) and RimTyme (38 stores) names.
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