Contrasting HORNBACH Holding AG & Co. KGaA (OTCMKTS:HBBHF) and Lovesac (NASDAQ:LOVE)

Lovesac (NASDAQ:LOVE) and HORNBACH Holding AG & Co. KGaA (OTCMKTS:HBBHF) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

91.3% of Lovesac shares are owned by institutional investors. 7.8% of Lovesac shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Lovesac and HORNBACH Holding AG & Co. KGaA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lovesac	$696.94 million	0.39	$4.07 million	$0.26	70.81
HORNBACH Holding AG & Co. KGaA	N/A	N/A	N/A	N/A	N/A

Lovesac has higher revenue and earnings than HORNBACH Holding AG & Co. KGaA.

Analyst Recommendations

This is a summary of current ratings and target prices for Lovesac and HORNBACH Holding AG & Co. KGaA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lovesac	1	0	4	0	2.60
HORNBACH Holding AG & Co. KGaA	0	0	0	0	0.00

Lovesac presently has a consensus target price of $22.67, suggesting a potential upside of 23.12%. Given Lovesac’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Lovesac is more favorable than HORNBACH Holding AG & Co. KGaA.

Profitability

This table compares Lovesac and HORNBACH Holding AG & Co. KGaA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lovesac	0.55%	1.88%	0.75%
HORNBACH Holding AG & Co. KGaA	N/A	N/A	N/A

Summary

Lovesac beats HORNBACH Holding AG & Co. KGaA on 9 of the 9 factors compared between the two stocks.

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.

About HORNBACH Holding AG & Co. KGaA

HORNBACH Holding AG & Co. KGaA, through its subsidiaries, develops and operates do-it-yourself (DIY) megastores with garden centers in Germany and other European countries. Its stationary stores offer hardware/electrical, paint/wallpaper/flooring, construction materials/timber/prefabricated components, sanitary/tiles, and garden hardware/plants. The company also provides a range of construction materials and tools stocked and supply services, as well as professional advice for various product ranges and lines of trade, including shell construction and roofing; interior fittings and facades; and civil engineering, and garden and landscape construction materials for construction, conversion, or refurbishment projects. In addition, it develops and rents retail real estate properties. It also operates HORNBACH online stores. The company was founded in 1877 and is based in Bornheim, Germany.