Reviewing Lands’ End (NASDAQ:LE) and PetMed Express (NASDAQ:PETS)

Lands’ End (NASDAQ:LE) and PetMed Express (NASDAQ:PETS) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

This table compares Lands’ End and PetMed Express’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lands’ End	26.62%	7.96%	3.38%
PetMed Express	-17.34%	-91.69%	-35.15%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Lands’ End and PetMed Express, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lands’ End	0	1	1	0	2.50
PetMed Express	2	1	0	0	1.33

Lands’ End currently has a consensus price target of $20.00, indicating a potential upside of 92.01%. PetMed Express has a consensus price target of $1.40, indicating a potential downside of 0.71%. Given Lands’ End’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Lands’ End is more favorable than PetMed Express.

Insider and Institutional Ownership

37.5% of Lands’ End shares are owned by institutional investors. Comparatively, 73.3% of PetMed Express shares are owned by institutional investors. 2.1% of Lands’ End shares are owned by insiders. Comparatively, 1.3% of PetMed Express shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Lands’ End has a beta of 2.32, indicating that its stock price is 132% more volatile than the S&P 500. Comparatively, PetMed Express has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Valuation & Earnings

This table compares Lands’ End and PetMed Express”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lands’ End	$1.34 billion	0.23	$5.51 million	$11.24	0.93
PetMed Express	$179.02 million	0.17	-$57.29 million	($1.38)	-1.02

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

Summary

Lands’ End beats PetMed Express on 13 of the 14 factors compared between the two stocks.

About Lands’ End

Lands’ End, Inc. operates as a digital retailer of apparel, swimwear, outerwear, accessories, footwear, home products, and uniform in the United States, Europe, Asia, and internationally. It operates through U.S. eCommerce, International, Outfitters, Third Party, and Retail segments. The company also sells uniform and logo apparel. It sells its products through e-commerce and company operated stores, as well as through third party distribution channels under the Lands’ End, Lands’ End Lighthouse, Squall, Tugless Tank, Drifter, Outrigger, and Marinac, Beach Living brands, as well as Supima, No-Gape, Starfish, Little Black Suit, Iron Knees, Hyde Park, Year’ Rounder, ClassMate, Willis & Geiger, and ThermaCheck brands. Lands’ End, Inc. was founded in 1963 and is headquartered in Dodgeville, Wisconsin.

About PetMed Express

PetMed Express, Inc., together with its subsidiaries, operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, health products, and other supplies for dogs, cats, and horses. It offers non-prescription medications and supplies, such as flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and household pet supplies; and prescription medications, including heartworm preventatives, flea and tick preventatives, arthritis, dermatitis, thyroid, diabetes, pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes. The company also sells food, beds, crates, stairs, and other pet supplies. It sells its products through its Internet website; mobile app; customer support center; and direct mail/print, which includes brochures and postcards. The company was incorporated in 1996 and is headquartered in Delray Beach, Florida.