Financial Comparison: Lovesac (LOVE) versus The Competition

Lovesac (NASDAQ:LOVE) is one of 285 public companies in the “Specialty Retail” industry, but how does it weigh in compared to its rivals? We will compare Lovesac to similar businesses based on the strength of its earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Valuation and Earnings

This table compares Lovesac and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lovesac	$697.11 million	$4.07 million	14.05
Lovesac Competitors	$7.07 billion	$386.47 million	32.10

Lovesac’s rivals have higher revenue and earnings than Lovesac. Lovesac is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Lovesac has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500. Comparatively, Lovesac’s rivals have a beta of 1.91, suggesting that their average stock price is 91% more volatile than the S&P 500.

Insider & Institutional Ownership

91.3% of Lovesac shares are held by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are held by institutional investors. 7.8% of Lovesac shares are held by insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Lovesac and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lovesac	0	1	3	0	2.75
Lovesac Competitors	3663	15557	21589	586	2.46

Lovesac currently has a consensus target price of $21.33, suggesting a potential upside of 24.48%. As a group, “Specialty Retail” companies have a potential upside of 7.80%. Given Lovesac’s stronger consensus rating and higher probable upside, analysts plainly believe Lovesac is more favorable than its rivals.

Profitability

This table compares Lovesac and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lovesac	2.56%	2.57%	1.02%
Lovesac Competitors	-3.67%	-13.85%	3.19%

Summary

Lovesac beats its rivals on 7 of the 13 factors compared.

About Lovesac

The Lovesac Company designs, manufactures, and sells furniture. It offers sactionals, such as seats and sides; sacs, including foam beanbag chairs; and other products comprising drink holders, footsac blankets, decorative pillows, fitted seat tables, and ottomans. The company markets its products primarily through www.lovesac.com website, as well as showrooms at top tier malls, lifestyle centers, mobile concierges, kiosks, and street locations in 41 states in the United States; and in store pop-up- shops and shop-in-shops, and barter inventory transactions. The Lovesac Company was founded in 1995 and is based in Stamford, Connecticut.