Head-To-Head Contrast: a.k.a. Brands (NYSE:AKA) versus National Vision (NASDAQ:EYE)

National Vision (NASDAQ:EYE) and a.k.a. Brands (NYSE:AKA) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Risk and Volatility

National Vision has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, a.k.a. Brands has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Insider & Institutional Ownership

55.3% of a.k.a. Brands shares are owned by institutional investors. 2.4% of National Vision shares are owned by insiders. Comparatively, 18.2% of a.k.a. Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares National Vision and a.k.a. Brands”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Vision	$1.99 billion	0.74	$29.60 million	$0.61	30.31
a.k.a. Brands	$617.82 million	0.17	-$31.43 million	($2.72)	-3.50

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
National Vision	2.47%	6.78%	3.01%
a.k.a. Brands	-4.78%	-24.96%	-5.80%

Analyst Recommendations

This is a summary of current ratings and target prices for National Vision and a.k.a. Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Vision	0	4	7	0	2.64
a.k.a. Brands	1	1	0	0	1.50

National Vision currently has a consensus target price of $29.82, suggesting a potential upside of 61.28%. Given National Vision’s stronger consensus rating and higher probable upside, analysts clearly believe National Vision is more favorable than a.k.a. Brands.

Summary

National Vision beats a.k.a. Brands on 11 of the 14 factors compared between the two stocks.

About National Vision

National Vision Holdings, Inc. is a U.S. optical retailer that provides eye care services and sells eyewear. Its offerings include eye exams, prescription eyeglasses, contact lenses, sunglasses and related accessories. The company operates stores under brands including America’s Best Contacts & Eyeglasses and Eyeglass World. It also operates Vista Optical locations, including stores in select host locations. Founded in 1990, National Vision serves customers across the United States through its retail locations and online channels.

About a.k.a. Brands

a.k.a. Brands Holding Corp. is a global fashion platform that owns and operates a portfolio of digitally native apparel and lifestyle brands. The company focuses on reaching younger consumers through e-commerce, social media, influencer marketing and brand-focused online shopping experiences. Its brand portfolio has included Princess Polly, an online women’s fashion retailer; Petal & Pup, which offers women’s apparel and occasion wear; and other specialty fashion businesses such as mnml, Culture Kings and Rebdolls.