Ollie’s Bargain Outlet Holdings (NASDAQ: OLLI) and Tractor Supply (NASDAQ:TSCO) are both mid-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Earnings and Valuation

This table compares Ollie’s Bargain Outlet Holdings and Tractor Supply’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ollie’s Bargain Outlet Holdings $924.20 million 2.90 $119.57 million $1.06 41.37
Tractor Supply $7.04 billion 1.06 $849.82 million $3.32 17.76

Tractor Supply has higher revenue and earnings than Ollie’s Bargain Outlet Holdings. Tractor Supply is trading at a lower price-to-earnings ratio than Ollie’s Bargain Outlet Holdings, indicating that it is currently the more affordable of the two stocks.

Dividends

Tractor Supply pays an annual dividend of $1.08 per share and has a dividend yield of 1.8%. Ollie’s Bargain Outlet Holdings does not pay a dividend. Tractor Supply pays out 32.5% of its earnings in the form of a dividend.

Profitability

This table compares Ollie’s Bargain Outlet Holdings and Tractor Supply’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ollie’s Bargain Outlet Holdings 7.25% 10.11% 6.39%
Tractor Supply 6.16% 30.56% 15.64%

Analyst Ratings

This is a summary of recent recommendations and price targets for Ollie’s Bargain Outlet Holdings and Tractor Supply, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ollie’s Bargain Outlet Holdings 0 3 3 0 2.50
Tractor Supply 0 16 9 0 2.36

Ollie’s Bargain Outlet Holdings presently has a consensus target price of $43.00, suggesting a potential downside of 1.94%. Tractor Supply has a consensus target price of $73.50, suggesting a potential upside of 24.66%. Given Tractor Supply’s higher probable upside, analysts plainly believe Tractor Supply is more favorable than Ollie’s Bargain Outlet Holdings.

Insider and Institutional Ownership

92.9% of Ollie’s Bargain Outlet Holdings shares are held by institutional investors. Comparatively, 92.3% of Tractor Supply shares are held by institutional investors. 22.3% of Ollie’s Bargain Outlet Holdings shares are held by company insiders. Comparatively, 1.2% of Tractor Supply shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Ollie’s Bargain Outlet Holdings has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500. Comparatively, Tractor Supply has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Summary

Tractor Supply beats Ollie’s Bargain Outlet Holdings on 9 of the 16 factors compared between the two stocks.

About Ollie’s Bargain Outlet Holdings

Ollie’s Bargain Outlet Holdings, Inc. is a retailer of brand name merchandise. The Company offers customers a selection of brand name products, including food, housewares, books and stationery, bed and bath, floor coverings, electronics and toys. Its warehouse format stores feature a range of products, including hardware, personal healthcare, candy, clothing, sporting goods, pet and lawn and garden products. It offers cooking utensils, dishes, appliances, plastic containers, coffee, bottled non-carbonated beverages, coffee, bottled non-carbonated beverages, bedding, towels, curtains, laminate flooring, commercial and residential carpeting, air conditioners, home electronics, cellular accessories, dolls, action figures, puzzles, action figures, puzzles, educational toys, board games, luggage, automotive, seasonal, furniture, summer furniture and lawn and garden. As of January 28, 2017, it had operated 234 stores across 19 contiguous states in the Eastern half of the United States.

About Tractor Supply

Tractor Supply Company is an operator of rural lifestyle retail stores in the United States. The Company is focused on supplying the needs of recreational farmers and ranchers and others, as well as tradesmen and small businesses. It is engaged in the retail sale of products that support the rural lifestyle. The Company operates retail stores under the names Tractor Supply Company, Del’s Feed & Farm Supply and Petsense, and operates Websites under the names TractorSupply.com and Petsense.com. The Company’s selection of merchandise consists of various product categories, including equine, livestock, pet and small animal products; hardware, truck, towing and tool products; seasonal products, including heating, lawn and garden items, power equipment, gifts and toys; work/recreational clothing and footwear, and maintenance products for agricultural and rural use. Its brands include 4health, JobSmart, Bit & Bridle, Paws & Claws, Blue Mountain, Redstone, Dumor, Equistages and Royal Wing.

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