Analyzing LightInTheBox (NYSE:LITB) and Kohl’s (NYSE:KSS)

LightInTheBox (NYSE:LITB) and Kohl’s (NYSE:KSS) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Valuation & Earnings

This table compares LightInTheBox and Kohl’s”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LightInTheBox	$224.32 million	0.24	$8.28 million	$0.48	6.38
Kohl’s	$15.53 billion	0.13	$272.00 million	$2.29	7.49

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

Analyst Recommendations

This is a summary of recent ratings for LightInTheBox and Kohl’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LightInTheBox	0	1	0	0	2.00
Kohl’s	5	8	1	1	1.87

Kohl’s has a consensus target price of $16.17, suggesting a potential downside of 5.73%. Given Kohl’s’ higher possible upside, analysts plainly believe Kohl’s is more favorable than LightInTheBox.

Volatility and Risk

LightInTheBox has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500. Comparatively, Kohl’s has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Profitability

This table compares LightInTheBox and Kohl’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LightInTheBox	3.91%	-231.00%	13.47%
Kohl’s	1.75%	6.75%	2.02%

Insider & Institutional Ownership

56.8% of LightInTheBox shares are held by institutional investors. Comparatively, 98.0% of Kohl’s shares are held by institutional investors. 62.2% of LightInTheBox shares are held by company insiders. Comparatively, 1.5% of Kohl’s shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Kohl’s beats LightInTheBox on 10 of the 15 factors compared between the two stocks.

About LightInTheBox

LightInTheBox Holding Co., Ltd., together with its subsidiaries, operates as an online retailer that delivers products directly to its consumers worldwide. The company provides apparel products; and other general merchandise products, such as small accessories and gadgets, home garden, toys and hobbies, electronics and communication devices, and other products. It also offers supplier chain management, research and development, customer, marketing, warehouse management, local delivery, and fulfillment services, as well as engages in the product sourcing, marketing, and operation of its websites and mobile applications. The company provides its products through www.lightinthebox.com and www.ezbuy.sg, and other websites and mobile applications. LightInTheBox Holding Co., Ltd. was founded in 2007 and is based in Singapore.

About Kohl’s

Kohl’s Corporation operates as an omnichannel retailer in the United States. It offers branded apparel, footwear, accessories, beauty, and home products through its stores and website. The company provides its products primarily under the brand names of Croft & Barrow, Jumping Beans, SO, Sonoma Goods for Life, and Tek Gear, as well as Food Network, LC Lauren Conrad, Nine West, and Simply Vera Vera Wang. Kohl’s Corporation was founded in 1988 and is headquartered in Menomonee Falls, Wisconsin.