Lands’ End (NASDAQ: LE) and Express (NYSE:EXPR) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Risk & Volatility

Lands’ End has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500. Comparatively, Express has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Lands’ End -8.48% -0.73% -0.19%
Express 0.85% 4.25% 2.24%

Institutional and Insider Ownership

60.5% of Lands’ End shares are owned by institutional investors. Comparatively, 99.2% of Express shares are owned by institutional investors. 0.5% of Lands’ End shares are owned by insiders. Comparatively, 2.6% of Express shares are owned by 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.

Earnings and Valuation

This table compares Lands’ End and Express’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lands’ End $1.34 billion 0.29 $39.65 million ($3.55) -3.38
Express $2.13 billion 0.25 $148.37 million $0.23 28.91

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Lands’ End and Express, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lands’ End 0 2 0 0 2.00
Express 0 7 1 0 2.13

Lands’ End presently has a consensus price target of $15.00, indicating a potential upside of 25.00%. Express has a consensus price target of $9.61, indicating a potential upside of 44.53%. Given Express’ stronger consensus rating and higher possible upside, analysts clearly believe Express is more favorable than Lands’ End.

Summary

Express beats Lands’ End on 12 of the 13 factors compared between the two stocks.

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.

About Express

Express, Inc. is a specialty apparel and accessories retailer offering both women’s and men’s merchandise. The Company targets women and men between 20 and 30 years old. It offers an assortment of fashionable apparel and accessories to address fashion needs across multiple aspects of lifestyles, including work, casual, jeanswear and going-out occasions. It is engaged in the operation of its brick-and-mortar retail and outlet stores, e-commerce operations and franchise operations. It sells its products through its e-commerce Website, www.express.com and its mobile application, and has franchise agreements with franchisees that operate Express locations in Latin America. It operated 656 stores across the United States, in Canada and in Puerto Rico, including 104 factory outlet stores, as of January 28, 2017. Its products are created by its in-house design team. Its portfolio of apparel products includes brands, such as Portofino shirt, Editor pant and 1MX shirt.

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