Analyzing Burlington Stores (NYSE:BURL) & a.k.a. Brands (NYSE:AKA)

Burlington Stores (NYSE:BURL) and a.k.a. Brands (NYSE:AKA) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.

Volatility & Risk

Burlington Stores has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, a.k.a. Brands has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Burlington Stores and a.k.a. Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Burlington Stores	0	7	13	0	2.65
a.k.a. Brands	1	2	1	0	2.00

Burlington Stores presently has a consensus price target of $370.75, suggesting a potential upside of 41.82%. a.k.a. Brands has a consensus price target of $19.00, suggesting a potential upside of 77.24%. Given a.k.a. Brands’ higher possible upside, analysts plainly believe a.k.a. Brands is more favorable than Burlington Stores.

Insider and Institutional Ownership

55.3% of a.k.a. Brands shares are owned by institutional investors. 1.3% of Burlington Stores shares are owned by company insiders. Comparatively, 18.2% of a.k.a. Brands shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Burlington Stores and a.k.a. Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Burlington Stores	$11.57 billion	1.42	$610.15 million	$11.14	23.47
a.k.a. Brands	$600.21 million	0.20	-$31.43 million	($2.48)	-4.32

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

Profitability

This table compares Burlington Stores and a.k.a. Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Burlington Stores	5.85%	41.72%	7.61%
a.k.a. Brands	-4.43%	-20.93%	-5.17%

Summary

Burlington Stores beats a.k.a. Brands on 11 of the 14 factors compared between the two stocks.

About Burlington Stores

Burlington Stores, Inc. operates as a retailer of branded merchandise in the United States. The company provides fashion-focused merchandise, including women's ready-to-wear apparel, menswear, youth apparel, footwear, accessories, toys, gifts, and coats, as well as baby, home, and beauty products. It operates stores under the Burlington Stores, and Cohoes Fashions brand names in Washington D.C. and Puerto Rico. Burlington Stores, Inc. was founded in 1972 and is headquartered in Burlington, New Jersey.

About a.k.a. Brands

a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. The company offers streetwear apparel, dresses, tops, bottoms, shoes, headwear, and accessories through its online stores under the Princess Polly, Petal & Pup, Culture Kings, and mnml brands. It also operates physical stores under the Culture Kings brand. The company was founded in 2018 and is headquartered in San Francisco, California.