Warby Parker (NYSE:WRBY) versus L’Oreal (OTCMKTS:LRLCY) Head-To-Head Survey

L’Oreal (OTCMKTS:LRLCY) and Warby Parker (NYSE:WRBY) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of recent recommendations for L’Oreal and Warby Parker, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
L’Oreal	2	5	2	3	2.50
Warby Parker	0	8	11	0	2.58

Warby Parker has a consensus price target of $26.75, suggesting a potential upside of 21.69%. Given Warby Parker’s stronger consensus rating and higher probable upside, analysts plainly believe Warby Parker is more favorable than L’Oreal.

Risk and Volatility

L’Oreal has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Warby Parker has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500.

Profitability

This table compares L’Oreal and Warby Parker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
L’Oreal	N/A	N/A	N/A
Warby Parker	0.08%	1.96%	1.01%

Earnings and Valuation

This table compares L’Oreal and Warby Parker”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
L’Oreal	$47.06 billion	4.88	$6.93 billion	N/A	N/A
Warby Parker	$771.32 million	3.01	-$20.39 million	$0.01	2,198.20

L’Oreal has higher revenue and earnings than Warby Parker.

Insider & Institutional Ownership

0.4% of L’Oreal shares are owned by institutional investors. Comparatively, 93.2% of Warby Parker shares are owned by institutional investors. 18.2% of Warby Parker shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Warby Parker beats L’Oreal on 9 of the 13 factors compared between the two stocks.

About L’Oreal

L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. The company operates through four divisions: Consumer Products, L'oréal Luxe, Professional Products, and Dermatological Beauty. It offers skincare, make-up, hair colourants, haircare, perfumes, and hygiene products. The company provides its products under the L'Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Stylenanda, Essie, Dark & Lovely, Mixa, Magic Mask, Niley, Lancôme, Yves Saint Laurent, Armani, Kiehl's Since 1851, Helena Rubinstein, Biotherm, Shu Uemura, IT Cosmetics, Ralph Lauren Fragrance, Urban Decay, Mugler, Valentino, Viktor&Rolf, Azzaro, Prada, Cacharel, Maison Margela Fragrance, Diesel, Yue Sai, Atelier Colonge, Carita, Takami, Aesop, L'Oréal Professionnel Paris, Kérastase, Redken, Matrix, Pureology, Pulp Riot, La Roche-Posay, Vichy, CeraVe, SkinCeuticals, and Skinbetter Science brands. It sells its products through distribution channels, such as hair salons, local stores, e-commerce, travel retail, mass market retail, department store perfumeries, pharmacies, drug stores, medi-spas, and free-standing stores. L'Oréal S.A. was founded in 1909 and is headquartered in Clichy, France.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.