Head to Head Review: Hennes & Mauritz (OTCMKTS:HNNMY) vs. Lulu’s Fashion Lounge (NASDAQ:LVLU)

Hennes & Mauritz (OTCMKTS:HNNMY) and Lulu’s Fashion Lounge (NASDAQ:LVLU) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Volatility and Risk

Hennes & Mauritz has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Lulu’s Fashion Lounge has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Hennes & Mauritz and Lulu’s Fashion Lounge, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hennes & Mauritz	2	5	0	1	2.00
Lulu’s Fashion Lounge	1	1	0	0	1.50

Lulu’s Fashion Lounge has a consensus price target of $15.00, indicating a potential downside of 3.66%. Given Lulu’s Fashion Lounge’s higher probable upside, analysts plainly believe Lulu’s Fashion Lounge is more favorable than Hennes & Mauritz.

Valuation & Earnings

This table compares Hennes & Mauritz and Lulu’s Fashion Lounge”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hennes & Mauritz	$23.01 billion	1.29	$1.23 billion	$0.16	26.31
Lulu’s Fashion Lounge	$315.89 million	0.14	-$55.29 million	($16.16)	-0.96

Hennes & Mauritz has higher revenue and earnings than Lulu’s Fashion Lounge. Lulu’s Fashion Lounge is trading at a lower price-to-earnings ratio than Hennes & Mauritz, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

0.0% of Hennes & Mauritz shares are held by institutional investors. Comparatively, 73.8% of Lulu’s Fashion Lounge shares are held by institutional investors. 6.8% of Lulu’s Fashion Lounge shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Hennes & Mauritz and Lulu’s Fashion Lounge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hennes & Mauritz	5.46%	30.80%	7.35%
Lulu’s Fashion Lounge	-15.83%	-251.91%	-15.75%

Summary

Hennes & Mauritz beats Lulu’s Fashion Lounge on 11 of the 14 factors compared between the two stocks.

About Hennes & Mauritz

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.

About Lulu’s Fashion Lounge

Lulu’s Fashion Lounge Holdings, Inc. engages in providing an online website for clothing. It offers retailing of women’s clothing, shoes, and accessories. The company was founded in 1996 and is headquartered in Chico, CA.