Frasers Group (OTCMKTS:SDIPF) vs. Lovesac (NASDAQ:LOVE) Head to Head Analysis

Lovesac (NASDAQ:LOVE) and Frasers Group (OTCMKTS:SDIPF) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Profitability

This table compares Lovesac and Frasers Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lovesac	0.55%	1.88%	0.75%
Frasers Group	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations for Lovesac and Frasers Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lovesac	1	0	4	0	2.60
Frasers Group	1	0	0	0	1.00

Lovesac currently has a consensus target price of $22.67, indicating a potential upside of 27.63%. Given Lovesac’s stronger consensus rating and higher possible upside, equities analysts plainly believe Lovesac is more favorable than Frasers Group.

Institutional and Insider Ownership

91.3% of Lovesac shares are owned by institutional investors. Comparatively, 22.5% of Frasers Group shares are owned by institutional investors. 7.8% of Lovesac shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Lovesac and Frasers Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lovesac	$697.11 million	0.37	$4.07 million	$0.26	68.31
Frasers Group	N/A	N/A	N/A	$0.30	29.90

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

Summary

Lovesac beats Frasers Group on 10 of the 11 factors compared between the two stocks.

About Lovesac

The Lovesac Company designs, manufactures, and sells furniture. It offers sactionals, such as seats and sides; sacs, including foam beanbag chairs; and other products comprising drink holders, footsac blankets, decorative pillows, fitted seat tables, and ottomans. The company markets its products primarily through www.lovesac.com website, as well as showrooms at top tier malls, lifestyle centers, mobile concierges, kiosks, and street locations in 41 states in the United States; and in store pop-up- shops and shop-in-shops, and barter inventory transactions. The Lovesac Company was founded in 1995 and is based in Stamford, Connecticut.

About Frasers Group

Frasers Group Plc, together with its subsidiaries, retails sports and leisure clothing, footwear, equipment, accessories, and apparel through department stores, shops, and online in the United Kingdom, Europe, the United States, Asia, Oceania, and internationally. The company operates through four segments: UK Sports Retail, Premium Lifestyle, International Retail, and Wholesale & Licensing. It is also involved in the wholesale distribution and sale of sports and leisure clothing, footwear, equipment, and apparel; and licensing activities. The company offers its products under its own and third party brands, which include Slazenger, Everlast, Lonsdale, Karrimor, 18montrose, Evans Cycles, Flannels, Frasers, Game, House of Fraser, Jack Wills, Sofa.com, Sports Direct, USC, Cruise, and van mildert. The company was formerly known as Sports Direct International plc and changed its name to Frasers Group Plc in December 2019. Frasers Group Plc was founded in 1982 and is headquartered in Shirebrook, the United Kingdom. Frasers Group plc operates as a subsidiary of MASH Holdings Limited.