Sequential Brands Group (SQBG) & Lands’ End (LE) Critical Comparison
Sequential Brands Group (NASDAQ: SQBG) and Lands’ End (NASDAQ:LE) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.
Insider & Institutional Ownership
52.2% of Sequential Brands Group shares are held by institutional investors. Comparatively, 62.1% of Lands’ End shares are held by institutional investors. 27.3% of Sequential Brands Group shares are held by insiders. Comparatively, 0.5% of Lands’ End shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of current recommendations and price targets for Sequential Brands Group and Lands’ End, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sequential Brands Group||0||2||5||0||2.71|
Sequential Brands Group currently has a consensus target price of $7.83, suggesting a potential upside of 225.71%. Lands’ End has a consensus target price of $15.00, suggesting a potential upside of 36.99%. Given Sequential Brands Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Sequential Brands Group is more favorable than Lands’ End.
Earnings & Valuation
This table compares Sequential Brands Group and Lands’ End’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Sequential Brands Group||$155.53 million||0.98||-$820,000.00||$0.02||120.31|
|Lands’ End||$1.34 billion||0.26||-$109.78 million||($3.55)||-3.08|
Sequential Brands Group has higher revenue, but lower earnings than Lands’ End. Lands’ End is trading at a lower price-to-earnings ratio than Sequential Brands Group, indicating that it is currently the more affordable of the two stocks.
This table compares Sequential Brands Group and Lands’ End’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sequential Brands Group||0.99%||1.29%||0.49%|
Volatility & Risk
Sequential Brands Group has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Lands’ End has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.
Sequential Brands Group beats Lands’ End on 11 of the 13 factors compared between the two stocks.
About Sequential Brands Group
Sequential Brands Group, Inc. owns a portfolio of consumer brands in the fashion, home, athletic and lifestyle categories. The Company’s portfolio of consumer brands includes Martha Stewart, Emeril Lagasse, Jessica Simpson, Joe’s Jeans, William Rast, Ellen Tracy, Revo, AND1 and Avia. The Company’s brands are licensed for a range of product categories, including apparel, footwear, eyewear, fashion accessories and home goods. The Company licenses brands to both wholesale and direct-to-retail licensees. The Company licenses the Martha Stewart brand to various licensees, including retailers, such as Macy’s, The Home Depot, PetSmart and Staples. The Jessica Simpson Collection is a signature lifestyle concept designed in collaboration with Jessica Simpson, which offers various product categories, including footwear, apparel, fragrance, fashion accessories, maternity apparel, girls clothing and a home line. The Avia brand offers running and activewear products.
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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