Francesca’s Holdings Corporation (NASDAQ: FRAN) and Lands’ End (NASDAQ:LE) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Francesca’s Holdings Corporation and Lands’ End’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Francesca’s Holdings Corporation $488.76 million 0.52 $83.79 million $0.97 7.08
Lands’ End $1.33 billion 0.30 $39.91 million ($3.55) -3.51

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Francesca’s Holdings Corporation and Lands’ End, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Francesca’s Holdings Corporation 0 6 2 0 2.25
Lands’ End 0 2 0 0 2.00

Francesca’s Holdings Corporation presently has a consensus target price of $13.86, indicating a potential upside of 101.71%. Lands’ End has a consensus target price of $15.00, indicating a potential upside of 20.48%. Given Francesca’s Holdings Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Francesca’s Holdings Corporation is more favorable than Lands’ End.

Institutional and Insider Ownership

60.6% of Lands’ End shares are held by institutional investors. 1.2% of Francesca’s Holdings Corporation shares are held by company insiders. Comparatively, 0.5% of Lands’ End shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Francesca’s Holdings Corporation has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500. Comparatively, Lands’ End has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Francesca’s Holdings Corporation 7.28% 31.88% 18.83%
Lands’ End -8.48% -0.73% -0.19%

Summary

Francesca’s Holdings Corporation beats Lands’ End on 10 of the 13 factors compared between the two stocks.

About Francesca’s Holdings Corporation

Francesca’s Holdings Corporation is a holding company. The Company is a specialty retailer, which operates a chain of boutiques across the United States. The Company offers a mix of apparel, jewelry, accessories and gifts. As of January 28, 2017, the Company operated 671 boutiques in 48 states and the District of Columbia, and also served its customers through www.francescas.com, its e-commerce Website. The Company offers apparel, such as dresses, fashion tops, sweaters, cardigans and wraps, bottoms, outerwear and jackets, tees and tanks, and intimates. The Company provides jewelry, such as necklaces, earrings, bracelets and rings. The Company offers accessories, such as handbags, clutches, wallets, shoes, belts, hats, scarves, sunglasses, watches and hair accessories. The Company provides gifts, such as fragrance, candles, bath and body, home accessories, books, wall art, nail polish and miscellaneous items. The Company operates its boutiques under the francesca’s brand.

About Lands’ End

Lands’ End, Inc. (Lands’ End) is a multi-channel retailer of casual clothing, accessories and footwear, as well as home products. The Company operates through two segments: Direct and Retail. The Company offers products through catalogs, online at www.landsend.com. The Direct segment sells products through the Company’s e-commerce Websites, international Websites and direct mail catalogs. The Retail segment sells products and services through Lands’ End Shops at Sears across the United States, the Company’s standalone Lands’ End Inlet stores and international shop-in-shops. The Company’s product categories include Apparel and Non-apparel. The Non-apparel category offers accessories, footwear and home goods. The Company provides embroidery, monogramming, gift wrapping, shipping and other services. In addition, the Company offers sheets and pillowcases, duvet covers and comforters, blankets and throws, mattress pads, towels, rugs and mats, school uniforms and shower curtains.

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