Comparing Lands’ End (NASDAQ:LE) & Chewy (NYSE:CHWY)

Lands’ End (NASDAQ:LE) and Chewy (NYSE:CHWY) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Risk and Volatility

Lands’ End has a beta of 2.32, meaning that its share price is 132% more volatile than the S&P 500. Comparatively, Chewy has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Institutional and Insider Ownership

37.5% of Lands’ End shares are owned by institutional investors. Comparatively, 93.1% of Chewy shares are owned by institutional investors. 2.1% of Lands’ End shares are owned by company insiders. Comparatively, 0.3% of Chewy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Lands’ End and Chewy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lands’ End	26.24%	8.22%	2.99%
Chewy	1.99%	60.02%	8.17%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Lands’ End and Chewy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lands’ End	0	1	1	0	2.50
Chewy	0	7	18	1	2.77

Lands’ End currently has a consensus price target of $20.00, suggesting a potential upside of 84.42%. Chewy has a consensus price target of $31.14, suggesting a potential upside of 30.07%. Given Lands’ End’s higher probable upside, research analysts plainly believe Lands’ End is more favorable than Chewy.

Valuation & Earnings

This table compares Lands’ End and Chewy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lands’ End	$1.34 billion	0.25	$5.51 million	$11.01	0.99
Chewy	$12.60 billion	0.78	$222.80 million	$0.60	39.90

Chewy has higher revenue and earnings than Lands’ End. Lands’ End is trading at a lower price-to-earnings ratio than Chewy, indicating that it is currently the more affordable of the two stocks.

Summary

Chewy beats Lands’ End on 10 of the 15 factors compared between the two stocks.

About Lands’ End

Lands’ End, Inc. operates as a digital retailer of apparel, swimwear, outerwear, accessories, footwear, home products, and uniform in the United States, Europe, Asia, and internationally. It operates through U.S. eCommerce, International, Outfitters, Third Party, and Retail segments. The company also sells uniform and logo apparel. It sells its products through e-commerce and company operated stores, as well as through third party distribution channels under the Lands’ End, Lands’ End Lighthouse, Squall, Tugless Tank, Drifter, Outrigger, and Marinac, Beach Living brands, as well as Supima, No-Gape, Starfish, Little Black Suit, Iron Knees, Hyde Park, Year’ Rounder, ClassMate, Willis & Geiger, and ThermaCheck brands. Lands’ End, Inc. was founded in 1963 and is headquartered in Dodgeville, Wisconsin.

About Chewy

Chewy, Inc., together with its subsidiaries, engages in the pure play e-commerce business in the United States. It provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its retail websites and mobile applications. The company was founded in 2010 and is based in Plantation, Florida.