Party City Holdco (NYSE: PRTY) and EVINE Live (NASDAQ:EVLV) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

43.3% of EVINE Live shares are owned by institutional investors. 5.0% of Party City Holdco shares are owned by insiders. Comparatively, 4.2% of EVINE Live shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Party City Holdco and EVINE Live, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Party City Holdco 0 2 2 0 2.50
EVINE Live 0 0 2 0 3.00

Party City Holdco currently has a consensus target price of $17.33, suggesting a potential upside of 21.21%. EVINE Live has a consensus target price of $2.50, suggesting a potential upside of 161.89%. Given EVINE Live’s stronger consensus rating and higher possible upside, analysts clearly believe EVINE Live is more favorable than Party City Holdco.

Profitability

This table compares Party City Holdco and EVINE Live’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Party City Holdco 4.97% 13.97% 4.09%
EVINE Live -1.08% -8.37% -2.38%

Valuation and Earnings

This table compares Party City Holdco and EVINE Live’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Party City Holdco $2.33 billion 0.73 $364.88 million $0.96 14.90
EVINE Live $647.45 million 0.09 $12.89 million ($0.11) -8.68

Party City Holdco has higher revenue and earnings than EVINE Live. EVINE Live is trading at a lower price-to-earnings ratio than Party City Holdco, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Party City Holdco has a beta of 2.69, meaning that its share price is 169% more volatile than the S&P 500. Comparatively, EVINE Live has a beta of 3.32, meaning that its share price is 232% more volatile than the S&P 500.

Summary

Party City Holdco beats EVINE Live on 8 of the 12 factors compared between the two stocks.

Party City Holdco Company Profile

Party City Holdco Inc. is a holding company with no operating assets or operations. As of December 31, 2016, the Company owned PC Nextco Holdings, LLC (PC Nextco), which owned PC Intermediate Holdings, Inc. (PC Intermediate). As of December 31, 2016, PC Intermediate owned Party City Holdings Inc. (PCHI). PCHI or its direct or indirect subsidiaries conduct all of its operating businesses. The Company operates through two segments: Retail and Wholesale. Its retail operations generate revenue primarily through the sale of its Amscan, Designware, Anagram and Costumes USA party supplies through its Party City stores, Halloween City stores and PartyCity.com. Its wholesale revenues are generated from the sale of party goods for all occasions, including paper and plastic tableware, accessories and novelties, costumes, metallic and latex balloons and stationery.

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.

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