Critical Analysis: Luvu Brands (OTCMKTS:LUVU) & Breville Group (OTCMKTS:BVILF)

Profitability

This table compares Luvu Brands and Breville Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luvu Brands	-4.23%	-53.41%	-10.68%
Breville Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Luvu Brands and Breville Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luvu Brands	$24.69 million	0.08	-$450,000.00	($0.01)	-2.70
Breville Group	N/A	N/A	N/A	C$0.37	61.71

Breville Group has lower revenue, but higher earnings than Luvu Brands. Luvu Brands is trading at a lower price-to-earnings ratio than Breville Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

24.9% of Breville Group shares are owned by institutional investors. 45.9% of Luvu Brands shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Breville Group beats Luvu Brands on 6 of the 8 factors compared between the two stocks.

About Luvu Brands

Luvu Brands, Inc. designs, manufactures, and markets various consumer lifestyle products worldwide. The company offers sensuality and intimacy products under the Liberator brand; and bed therapy products, which assistive in relieving medical conditions associated with acid reflux, surgery recovery, and chronic pain under the Avana brand. It also provides daybeds, sofas, and beanbags made from virgin and re-purposed polyurethane foam under the Jaxx brand. In addition, the company is involved in the purchase and resale of products to e-merchants, retailers, and e-commerce sites, as well as provision of contract manufacturing and fulfillment services. It markets its products through various websites comprising liberator.com, jaxxliving.com, and avanacomfort.com, as well as through distributors, retailers, and e-tailers across various channels of adult, mass market, drug, and specialty accounts. The company was formerly known as Liberator, Inc. and changed its name to Luvu Brands, Inc. in November 2015. Luvu Brands, Inc. was incorporated in 1999 and is headquartered in Atlanta, Georgia.

About Breville Group

Breville Group Limited designs, develops, markets, and distributes small electrical kitchen appliances in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was formerly known as Housewares International Limited and changed its name to Breville Group Limited in November 2008. Breville Group Limited was founded in 1957 and is headquartered in Alexandria, Australia.