Financial Analysis: Giftify (NASDAQ:GIFT) versus Kohl’s (NYSE:KSS)

Giftify (NASDAQ:GIFT) and Kohl’s (NYSE:KSS) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Volatility & Risk

Giftify has a beta of -1.35, suggesting that its share price is 235% less volatile than the S&P 500. Comparatively, Kohl’s has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Valuation & Earnings

This table compares Giftify and Kohl’s”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Giftify	$83.11 million	0.38	-$10.49 million	($0.27)	-3.30
Kohl’s	$15.46 billion	0.14	$272.00 million	$2.36	8.12

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Giftify and Kohl’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Giftify	1	1	0	0	1.50
Kohl’s	6	9	1	0	1.69

Kohl’s has a consensus price target of $15.31, indicating a potential downside of 20.17%. Given Kohl’s’ stronger consensus rating and higher possible upside, analysts plainly believe Kohl’s is more favorable than Giftify.

Institutional and Insider Ownership

98.0% of Kohl’s shares are owned by institutional investors. 23.8% of Giftify shares are owned by insiders. Comparatively, 1.5% of Kohl’s shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Giftify and Kohl’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Giftify	-10.32%	-39.87%	-27.40%
Kohl’s	1.76%	4.67%	1.38%

Summary

Kohl’s beats Giftify on 12 of the 14 factors compared between the two stocks.

About Giftify

RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.

About Kohl’s

Kohl’s Corporation operates as an omnichannel retailer in the United States. It offers branded apparel, footwear, accessories, beauty, and home products through its stores and website. The company provides its products primarily under the brand names of Croft & Barrow, Jumping Beans, SO, Sonoma Goods for Life, and Tek Gear, as well as Food Network, LC Lauren Conrad, Nine West, and Simply Vera Vera Wang. Kohl’s Corporation was founded in 1988 and is headquartered in Menomonee Falls, Wisconsin.