Contrasting a.k.a. Brands (NYSE:AKA) and Five Below (NASDAQ:FIVE)

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Five Below and a.k.a. Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five Below	0	13	19	0	2.59
a.k.a. Brands	1	1	0	0	1.50

Five Below presently has a consensus price target of $300.45, suggesting a potential upside of 21.28%. Given Five Below’s stronger consensus rating and higher probable upside, equities analysts clearly believe Five Below is more favorable than a.k.a. Brands.

Risk & Volatility

Five Below has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, a.k.a. Brands has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Institutional and Insider Ownership

55.3% of a.k.a. Brands shares are held by institutional investors. 1.0% of Five Below shares are held by insiders. Comparatively, 18.2% of a.k.a. Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Five Below	11.65%	22.13%	9.86%
a.k.a. Brands	-4.78%	-24.96%	-5.80%

Valuation & Earnings

This table compares Five Below and a.k.a. Brands”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Five Below	$4.76 billion	2.86	$358.64 million	$11.14	22.24
a.k.a. Brands	$600.21 million	0.17	-$31.43 million	($2.72)	-3.41

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

Summary

Five Below beats a.k.a. Brands on 11 of the 14 factors compared between the two stocks.

About Five Below

Five Below, Inc. is a U.S. discount retailer offering a changing assortment of value-priced products for teens, tweens, and families. Its merchandise spans toys and games, technology accessories, sports and recreation, fashion and accessories, home goods, party supplies, seasonal items, and candy. The company was founded in 2002 by David Schlessinger and Tom Vellios, and opened its first store in Wayne, Pennsylvania. While its name reflects its original focus on products priced at $5 or less, Five Below has expanded its assortment to include higher-priced items through its Five Beyond offering.

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.