Williams-Sonoma (NYSE:WSM – Get Free Report) and Lovesac (NASDAQ:LOVE – Get Free Report) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.
Insider & Institutional Ownership
99.3% of Williams-Sonoma shares are owned by institutional investors. Comparatively, 91.3% of Lovesac shares are owned by institutional investors. 1.1% of Williams-Sonoma shares are owned by company insiders. Comparatively, 12.5% of Lovesac shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and target prices for Williams-Sonoma and Lovesac, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Williams-Sonoma | 1 | 10 | 8 | 2 | 2.52 |
| Lovesac | 1 | 0 | 5 | 0 | 2.67 |
Valuation and Earnings
This table compares Williams-Sonoma and Lovesac”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Williams-Sonoma | $7.71 billion | 3.15 | $1.13 billion | $9.09 | 21.92 |
| Lovesac | $680.63 million | 0.36 | $11.56 million | $0.63 | 26.57 |
Williams-Sonoma has higher revenue and earnings than Lovesac. Williams-Sonoma is trading at a lower price-to-earnings ratio than Lovesac, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Williams-Sonoma has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Lovesac has a beta of 2.38, suggesting that its share price is 138% more volatile than the S&P 500.
Profitability
This table compares Williams-Sonoma and Lovesac’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Williams-Sonoma | 14.54% | 54.47% | 22.05% |
| Lovesac | 1.87% | 6.35% | 2.57% |
Summary
Williams-Sonoma beats Lovesac on 10 of the 15 factors compared between the two stocks.
About Williams-Sonoma
Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home. It offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma Home brand, as well as home furnishings and decorative accessories under the Williams Sonoma lifestyle brand; and furniture, bedding, lighting, rugs, table essentials, and decorative accessories under the Pottery Barn brand. The company also provides home decor products under the West Elm brand; kids accessories under the Pottery Barn Kids brand; and an organic bedding to multi-purpose furniture under the Pottery Barn Teen brand. In addition, it offers made-to-order lighting, hardware, furniture, and home decors inspired by history under the Rejuvenation brand; personalized products and custom gifts under the Mark and Graham brand; and colorful and vintage-inspired heirloom products under the GreenRow, as well as operates a 3-D imaging and augmented reality platform for the home furnishings and décor industry under the Outward brand. The company markets its products through e-commerce websites, direct-mail catalogs, and retail stores. Williams-Sonoma, Inc. was founded in 1956 and is headquartered in San Francisco, California.
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.
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