Head to Head Review: Chico’s (CHS) vs. Cache (CACH)

Chico’s (NYSE: CHS) and Cache (OTCMKTS:CACH) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Profitability

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This table compares Chico’s and Cache’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chico’s 4.43% 13.79% 8.02%
Cache N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent recommendations for Chico’s and Cache, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chico’s 1 9 4 0 2.21
Cache 0 0 0 0 N/A

Chico’s presently has a consensus target price of $10.92, suggesting a potential upside of 4.87%. Given Chico’s’ higher possible upside, equities analysts plainly believe Chico’s is more favorable than Cache.

Dividends

Chico’s pays an annual dividend of $0.34 per share and has a dividend yield of 3.3%. Cache does not pay a dividend. Chico’s pays out 50.0% of its earnings in the form of a dividend. Chico’s has increased its dividend for 8 consecutive years.

Valuation & Earnings

This table compares Chico’s and Cache’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chico’s $2.28 billion 0.58 $101.00 million $0.68 15.31
Cache N/A N/A N/A N/A N/A

Chico’s has higher revenue and earnings than Cache.

Insider and Institutional Ownership

99.5% of Chico’s shares are held by institutional investors. 3.0% of Chico’s shares are held by company insiders. Comparatively, 23.0% of Cache shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Chico’s has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Cache has a beta of -2.68, suggesting that its stock price is 368% less volatile than the S&P 500.

Summary

Chico’s beats Cache on 10 of the 12 factors compared between the two stocks.

Chico’s Company Profile

Chico's FAS, Inc. operates as an omni-channel specialty retailer of women's private branded, casual-to-dressy clothing, intimates, and complementary accessories. The company's portfolio of brands consists of the Chico's, White House Black Market (WHBM), and Soma. The Chico's brand primarily sells private branded clothing focusing on women 45 and older. The WHBM brand sells private branded clothing and accessories, such as shoes, belts, scarves, handbags, and jewelry focusing on women who are 35 years and older. The Soma brand sells designed private branded lingerie, sleepwear, loungewear, activewear, swimwear, and beauty products focusing on women who are 35 and older. As of February 3, 2018, it operated 1,460 retail stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada. The company also sells through its Websites and catalogs. Chico's FAS, Inc. was founded in 1983 and is headquartered in Fort Myers, Florida.

Cache Company Profile

Cache, Inc., together with its subsidiaries, operates as a mall-based and online woman's specialty retailer of apparel and accessories in the United States. The company designs and markets sportswear, such as tops, sweaters, and jackets and bottoms for day or evening events; dresses ranges from shorter lengths to long for day, evening, and events; and accessories, including jewelry, belts, scarves, and handbags under the Cache brand name. As of August 11, 2014, it operated 239 stores located in 41 states, the Virgin Islands, and Puerto Rico. The company was founded in 1975 and is headquartered in New York, New York.

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