Krispy Kreme (NASDAQ:DNUT) versus Ollie’s Bargain Outlet (NASDAQ:OLLI) Critical Analysis

Ollie’s Bargain Outlet (NASDAQ:OLLI) and Krispy Kreme (NASDAQ:DNUT) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Ollie’s Bargain Outlet and Krispy Kreme’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ollie’s Bargain Outlet	8.81%	12.86%	8.29%
Krispy Kreme	-33.27%	-5.13%	-1.67%

Volatility & Risk

Ollie’s Bargain Outlet has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Krispy Kreme has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Insider & Institutional Ownership

81.7% of Krispy Kreme shares are owned by institutional investors. 0.9% of Ollie’s Bargain Outlet shares are owned by insiders. Comparatively, 3.0% of Krispy Kreme shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Ollie’s Bargain Outlet and Krispy Kreme”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ollie’s Bargain Outlet	$2.27 billion	2.96	$199.76 million	$3.62	30.33
Krispy Kreme	$1.67 billion	0.46	$3.10 million	($2.99)	-1.48

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Ollie’s Bargain Outlet and Krispy Kreme, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ollie’s Bargain Outlet	0	5	11	0	2.69
Krispy Kreme	3	5	4	0	2.08

Ollie’s Bargain Outlet currently has a consensus price target of $142.57, indicating a potential upside of 29.85%. Krispy Kreme has a consensus price target of $5.51, indicating a potential upside of 24.48%. Given Ollie’s Bargain Outlet’s stronger consensus rating and higher probable upside, equities analysts plainly believe Ollie’s Bargain Outlet is more favorable than Krispy Kreme.

Summary

Ollie’s Bargain Outlet beats Krispy Kreme on 11 of the 14 factors compared between the two stocks.

About Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.

About Krispy Kreme

Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.