LightInTheBox (NYSE:LITB) versus Monotaro (OTCMKTS:MONOY) Head-To-Head Contrast

Monotaro (OTCMKTS:MONOY) and LightInTheBox (NYSE:LITB) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Risk and Volatility

Monotaro has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, LightInTheBox has a beta of 0.02, suggesting that its stock price is 98% less volatile than the S&P 500.

Profitability

This table compares Monotaro and LightInTheBox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monotaro	9.70%	29.68%	19.14%
LightInTheBox	3.91%	-231.00%	13.47%

Valuation & Earnings

This table compares Monotaro and LightInTheBox”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monotaro	$2.23 billion	2.90	$217.31 million	$0.46	28.34
LightInTheBox	$227.21 million	0.22	$8.28 million	$0.48	5.85

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

Insider & Institutional Ownership

0.1% of Monotaro shares are owned by institutional investors. Comparatively, 56.8% of LightInTheBox shares are owned by institutional investors. 62.2% of LightInTheBox shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Monotaro and LightInTheBox, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monotaro	0	0	1	0	3.00
LightInTheBox	0	1	0	0	2.00

Summary

Monotaro beats LightInTheBox on 10 of the 13 factors compared between the two stocks.

About Monotaro

MonotaRO Co., Ltd., together with its subsidiaries, operates an online MRO products store in Japan and internationally. The company offers safety protective equipment, work clothes, and safety shoes; logistics, storage, and packing supplies; tapes; safety, disaster prevention, and crime prevention products; safety signs; ship and fishing supplies; office supplies; office furniture/lighting/cleaning supplies; cutting tools and abrasives; measurement and surveying equipment; hand tools/electric and pneumatic tools; sprays, oils, greases, and paints; adhesives and repair materials; welding supplies; and piping and water related components/pumps/pneumatic and hydraulic equipment/hoses. It also provides mechanical parts; control equipment; soldering and anti-static products; architectural hardware, building materials, painting, and interior supplies; air conditioning and electrical equipment; electrical materials; screws, bolts, nails, and materials; automotive supplies; truck supplies; motorcycle supplies; bicycle supplies; scientific research and development supplies; clean room supplies; kitchen equipment and store supplies; agricultural and gardening supplies; and medical and nursing supplies. It serves factories, construction, automobile maintenance, and other industries. The company was formerly known as Sumisho Grainger Co., Ltd. and changed its name to MonotaRO Co., Ltd. in February 2006. The company was incorporated in 2000 and is headquartered in Osaka, Japan. MonotaRO Co., Ltd. operates as a subsidiary of Grainger Global Holdings, Inc.

About LightInTheBox

LightInTheBox Holding Co., Ltd., together with its subsidiaries, operates as an online retailer that delivers products directly to its consumers worldwide. The company provides apparel products; and other general merchandise products, such as small accessories and gadgets, home garden, toys and hobbies, electronics and communication devices, and other products. It also offers supplier chain management, research and development, customer, marketing, warehouse management, local delivery, and fulfillment services, as well as engages in the product sourcing, marketing, and operation of its websites and mobile applications. The company provides its products through www.lightinthebox.com and www.ezbuy.sg, and other websites and mobile applications. LightInTheBox Holding Co., Ltd. was founded in 2007 and is based in Singapore.