Critical Survey: Ollie’s Bargain Outlet (NASDAQ:OLLI) vs. LY (OTCMKTS:YAHOY)

Ollie’s Bargain Outlet (NASDAQ:OLLI) and LY (OTCMKTS:YAHOY) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Valuation and Earnings

This table compares Ollie’s Bargain Outlet and LY”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ollie’s Bargain Outlet	$2.65 billion	2.09	$240.60 million	$4.48	20.76
LY	$13.53 billion	1.73	$1.28 billion	$0.39	17.38

LY has higher revenue and earnings than Ollie’s Bargain Outlet. LY is trading at a lower price-to-earnings ratio than Ollie’s Bargain Outlet, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ollie’s Bargain Outlet and LY’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ollie’s Bargain Outlet	9.79%	14.54%	9.23%
LY	6.24%	5.49%	1.80%

Analyst Ratings

This is a breakdown of current ratings for Ollie’s Bargain Outlet and LY, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ollie’s Bargain Outlet	0	4	13	0	2.76
LY	0	2	0	0	2.00

Ollie’s Bargain Outlet presently has a consensus price target of $103.57, indicating a potential upside of 11.37%. Given Ollie’s Bargain Outlet’s stronger consensus rating and higher probable upside, equities analysts plainly believe Ollie’s Bargain Outlet is more favorable than LY.

Volatility & Risk

Ollie’s Bargain Outlet has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, LY has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Summary

Ollie’s Bargain Outlet beats LY on 9 of the 12 factors compared between the two stocks.

About Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.

About LY

LY Corporation engages in the online advertising and e-commerce businesses in Japan. The company provides LINE, a communication app; and Yahoo! JAPAN, an internet service that offers search, news, weather, shopping, auction, and other services. It also offers reuse, membership, and payment-related services. The company was formerly known as Z Holdings Corporation and changed its name to LY Corporation in October 2023. LY Corporation was founded in 1996 and is headquartered in Chiyoda, Japan. LY Corporation operates as a subsidiary of A Holdings Corporation.