Ollie's Bargain Outlet (NASDAQ: OLLI) and Party City Holdco (NYSE:PRTY) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Institutional & Insider Ownership
89.7% of Ollie's Bargain Outlet shares are held by institutional investors. 22.3% of Ollie's Bargain Outlet shares are held by insiders. Comparatively, 5.0% of Party City Holdco shares are held 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.
This table compares Ollie's Bargain Outlet and Party City Holdco’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ollie's Bargain Outlet||$890.32 million||3.84||$59.76 million||$1.27||43.70|
|Party City Holdco||$2.28 billion||0.81||$117.47 million||$0.96||16.15|
Party City Holdco has higher revenue and earnings than Ollie's Bargain Outlet. Party City Holdco 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.
This is a summary of current ratings and recommmendations for Ollie's Bargain Outlet and Party City Holdco, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ollie's Bargain Outlet||1||5||7||0||2.46|
|Party City Holdco||0||2||4||0||2.67|
Ollie's Bargain Outlet presently has a consensus target price of $51.08, suggesting a potential downside of 7.96%. Party City Holdco has a consensus target price of $16.67, suggesting a potential upside of 7.53%. Given Party City Holdco’s stronger consensus rating and higher probable upside, analysts plainly believe Party City Holdco is more favorable than Ollie's Bargain Outlet.
This table compares Ollie's Bargain Outlet and Party City Holdco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ollie's Bargain Outlet||8.17%||10.55%||7.02%|
|Party City Holdco||4.96%||13.74%||4.12%|
Ollie's Bargain Outlet beats Party City Holdco on 8 of the 13 factors compared between the two stocks.
About Ollie's Bargain Outlet
Ollie’s Bargain Outlet Holdings, Inc. is a retailer of brand name merchandise. The Company offers customers a selection of brand name products, including food, housewares, books and stationery, bed and bath, floor coverings, electronics and toys. Its warehouse format stores feature a range of products, including hardware, personal healthcare, candy, clothing, sporting goods, pet and lawn and garden products. It offers cooking utensils, dishes, appliances, plastic containers, coffee, bottled non-carbonated beverages, coffee, bottled non-carbonated beverages, bedding, towels, curtains, laminate flooring, commercial and residential carpeting, air conditioners, home electronics, cellular accessories, dolls, action figures, puzzles, action figures, puzzles, educational toys, board games, luggage, automotive, seasonal, furniture, summer furniture and lawn and garden. As of January 28, 2017, it had operated 234 stores across 19 contiguous states in the Eastern half of the United States.
About Party City Holdco
Party City Holdco Inc. is a holding company with no operating assets or operations. As of December 31, 2016, the Company owned PC Nextco Holdings, LLC (PC Nextco), which owned PC Intermediate Holdings, Inc. (PC Intermediate). As of December 31, 2016, PC Intermediate owned Party City Holdings Inc. (PCHI). PCHI or its direct or indirect subsidiaries conduct all of its operating businesses. The Company operates through two segments: Retail and Wholesale. Its retail operations generate revenue primarily through the sale of its Amscan, Designware, Anagram and Costumes USA party supplies through its Party City stores, Halloween City stores and PartyCity.com. Its wholesale revenues are generated from the sale of party goods for all occasions, including paper and plastic tableware, accessories and novelties, costumes, metallic and latex balloons and stationery.
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