Monotaro (OTCMKTS:MONOY) & LightInTheBox (NYSE:LITB) Financial Analysis

LightInTheBox (NYSE:LITB) and Monotaro (OTCMKTS:MONOY) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for LightInTheBox and Monotaro, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LightInTheBox	0	1	0	0	2.00
Monotaro	0	1	0	0	2.00

Profitability

This table compares LightInTheBox and Monotaro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LightInTheBox	3.91%	-231.00%	13.47%
Monotaro	9.70%	29.68%	19.14%

Institutional & Insider Ownership

56.8% of LightInTheBox shares are held by institutional investors. Comparatively, 0.1% of Monotaro shares are held by institutional investors. 62.2% of LightInTheBox shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

LightInTheBox has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500. Comparatively, Monotaro has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Valuation and Earnings

This table compares LightInTheBox and Monotaro”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LightInTheBox	$224.32 million	0.24	$8.28 million	$0.48	6.39
Monotaro	$2.23 billion	2.84	$217.31 million	$0.46	27.75

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

Summary

Monotaro beats LightInTheBox on 8 of the 11 factors compared between the two stocks.

About LightInTheBox

LightInTheBox Holding Co., Ltd., together with its subsidiaries, operates as an online retailer that delivers products directly to its consumers worldwide. The company provides apparel products; and other general merchandise products, such as small accessories and gadgets, home garden, toys and hobbies, electronics and communication devices, and other products. It also offers supplier chain management, research and development, customer, marketing, warehouse management, local delivery, and fulfillment services, as well as engages in the product sourcing, marketing, and operation of its websites and mobile applications. The company provides its products through www.lightinthebox.com and www.ezbuy.sg, and other websites and mobile applications. LightInTheBox Holding Co., Ltd. was founded in 2007 and is based in Singapore.

About Monotaro

MonotaRO Co., Ltd., together with its subsidiaries, operates an online MRO products store in Japan and internationally. The company offers safety protective equipment, work clothes, and safety shoes; logistics, storage, and packing supplies; tapes; safety, disaster prevention, and crime prevention products; safety signs; ship and fishing supplies; office supplies; office furniture/lighting/cleaning supplies; cutting tools and abrasives; measurement and surveying equipment; hand tools/electric and pneumatic tools; sprays, oils, greases, and paints; adhesives and repair materials; welding supplies; and piping and water related components/pumps/pneumatic and hydraulic equipment/hoses. It also provides mechanical parts; control equipment; soldering and anti-static products; architectural hardware, building materials, painting, and interior supplies; air conditioning and electrical equipment; electrical materials; screws, bolts, nails, and materials; automotive supplies; truck supplies; motorcycle supplies; bicycle supplies; scientific research and development supplies; clean room supplies; kitchen equipment and store supplies; agricultural and gardening supplies; and medical and nursing supplies. It serves factories, construction, automobile maintenance, and other industries. The company was formerly known as Sumisho Grainger Co., Ltd. and changed its name to MonotaRO Co., Ltd. in February 2006. The company was incorporated in 2000 and is headquartered in Osaka, Japan. MonotaRO Co., Ltd. operates as a subsidiary of Grainger Global Holdings, Inc.