The Michaels Companies (NASDAQ: MIK) and Stamps.com (NASDAQ:STMP) are both mid-cap retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.
This table compares The Michaels Companies and Stamps.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Michaels Companies||7.29%||-22.53%||18.13%|
Insider & Institutional Ownership
98.4% of The Michaels Companies shares are owned by institutional investors. 1.5% of The Michaels Companies shares are owned by company insiders. Comparatively, 11.5% of Stamps.com shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
The Michaels Companies has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Stamps.com has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500.
Earnings & Valuation
This table compares The Michaels Companies and Stamps.com’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|The Michaels Companies||$5.20 billion||0.65||$378.15 million||$1.89||9.83|
|Stamps.com||$364.30 million||8.40||$75.22 million||$7.63||22.94|
The Michaels Companies has higher revenue and earnings than Stamps.com. The Michaels Companies is trading at a lower price-to-earnings ratio than Stamps.com, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for The Michaels Companies and Stamps.com, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Michaels Companies||1||2||5||0||2.50|
The Michaels Companies presently has a consensus target price of $24.29, suggesting a potential upside of 30.78%. Stamps.com has a consensus target price of $217.00, suggesting a potential upside of 24.00%. Given The Michaels Companies’ higher possible upside, analysts plainly believe The Michaels Companies is more favorable than Stamps.com.
Stamps.com beats The Michaels Companies on 9 of the 14 factors compared between the two stocks.
About The Michaels Companies
The Michaels Companies, Inc. (Michaels) is an arts and crafts specialty retailer in North America. The Company’s segments include Michaels-U.S., Michaels-Canada, Aaron Brothers, Pat Catan’s and Darice. As of January 28, 2017, the Company operated 1,223 Michaels retail stores in 49 states and Canada, with approximately 18,000 average square feet of selling space per store. It operated 109 Aaron Brothers stores in nine states, with approximately 5,500 average square feet of selling space and 35 Pat Catan’s stores in five states, with approximately 32,000 average square feet of selling space, as of January 28, 2017. The Company also operates an international wholesale business under the Darice brand name. The Company’s stores purchase custom frames, framing supplies and mats from its framing operation and subsidiary, Artistree, Inc. (Artistree), which consists of a manufacturing facility and four regional processing centers.
Stamps.com Inc. is a provider of Internet-based mailing and shipping solutions in the United States. The Company offers mailing and shipping products and services to its customers under the Stamps.com, Endicia, ShipStation, ShipWorks and ShippingEasy brands. It operates through the Internet Mailing and Shipping Services segment. Under the Stamps.com and Endicia brands, customers use its United States Postal Service (USPS) only solutions to mail and ship a range of mail pieces and packages through the USPS. USPS mailing and shipping solutions enable users to print electronic postage directly onto envelopes, plain paper, or labels using only a standard personal computer, printer and Internet connection. The Company offers USPS mailing and shipping services, multi-carrier shipping services, mailing and shipping services, branded insurance and international postage solutions. The Company offers customized postage under the PhotoStamps and PictureItPostage brand names.
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