Barnes & Noble Education (NYSE: BNED) and Coastal Contacts (NASDAQ:COA) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.
This table compares Barnes & Noble Education and Coastal Contacts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Barnes & Noble Education||-12.31%||-41.88%||-18.50%|
69.3% of Barnes & Noble Education shares are held by institutional investors. 3.5% of Barnes & Noble Education shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Barnes & Noble Education and Coastal Contacts’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Barnes & Noble Education||$1.87 billion||0.17||$5.36 million||($5.76)||-1.19|
Barnes & Noble Education has higher revenue and earnings than Coastal Contacts. Coastal Contacts is trading at a lower price-to-earnings ratio than Barnes & Noble Education, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Barnes & Noble Education and Coastal Contacts, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Barnes & Noble Education||0||0||2||0||3.00|
Barnes & Noble Education currently has a consensus price target of $12.00, suggesting a potential upside of 74.93%. Given Barnes & Noble Education’s higher probable upside, equities analysts clearly believe Barnes & Noble Education is more favorable than Coastal Contacts.
Barnes & Noble Education beats Coastal Contacts on 5 of the 9 factors compared between the two stocks.
Barnes & Noble Education Company Profile
Barnes & Noble Education, Inc. is a contract operator of bookstores on college and university campuses across the United States and a provider of digital education services. The Company offers a support system, and a retail and digital learning experience for students. Through its subsidiary, Barnes & Noble College Booksellers, LLC, the Company operates approximately 750 campus bookstores and the school-branded e-commerce sites for each store, serving over five million college students and their faculty. The Company offers a set of products and services to help students, faculty and administrators achieve their shared educational and social goals. Its suite of product offerings includes Textbook and Course Material Sales, Textbook and Course Material Rentals, General Merchandise, Trade, Digital Education and Brand Partnerships. The Company also offers other merchandise, such as laptops and other technology products, notebooks, backpacks, school and dormitory supplies and related items.
Coastal Contacts Company Profile
Coastal Contacts Inc. is an online retailer of eyewear serving markets in North America, Europe and Asia Pacific. The Company operates in two primary product segments: contact lenses and glasses. The Company has approximately nine stores in Canada and Sweden. It sells contact lenses manufactured by multinational companies, such as Vistakon (a division of Johnson and Johnson Vision Care Inc.), Alcon, Inc., Bausch & Lomb Inc. and Coopervision Inc. Its products are offered for sale by telephone, e9 mail, through its Websites, which include www.ClearlyContacts.ca, www.ClearlyContacts.com.au, www.ClearlyContacts.co.nz, www.LensWay.se, www.LensWay.fi, www.LensWay.nl, www.LensWay.no, www.LensWay.co.uk, and www.ContactSan.com or at one of its nine physical retail locations. In April 2014, the Company announced that Essilor International (Compagnie Generale d’Optique), S.A. (Essilor) has indirectly acquired the interest of Coastal.com.
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