Critical Analysis: Lithia Motors (NYSE:LAD) & 1-800 FLOWERS.COM (NASDAQ:FLWS)

1-800 FLOWERS.COM (NASDAQ:FLWS) and Lithia Motors (NYSE:LAD) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Volatility and Risk

1-800 FLOWERS.COM has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Lithia Motors has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.

Profitability

This table compares 1-800 FLOWERS.COM and Lithia Motors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
1-800 FLOWERS.COM	-8.96%	-36.75%	-10.16%
Lithia Motors	1.88%	12.16%	3.14%

Earnings and Valuation

This table compares 1-800 FLOWERS.COM and Lithia Motors”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
1-800 FLOWERS.COM	$1.50 billion	0.12	-$134.76 million	($2.11)	-1.30
Lithia Motors	$37.63 billion	0.17	$819.60 million	$30.15	9.78

Lithia Motors has higher revenue and earnings than 1-800 FLOWERS.COM. 1-800 FLOWERS.COM is trading at a lower price-to-earnings ratio than Lithia Motors, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

38.4% of 1-800 FLOWERS.COM shares are held by institutional investors. 52.2% of 1-800 FLOWERS.COM shares are held by insiders. Comparatively, 1.1% of Lithia Motors shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for 1-800 FLOWERS.COM and Lithia Motors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
1-800 FLOWERS.COM	1	1	1	0	2.00
Lithia Motors	0	6	6	0	2.50

1-800 FLOWERS.COM currently has a consensus price target of $3.75, suggesting a potential upside of 36.36%. Lithia Motors has a consensus price target of $402.60, suggesting a potential upside of 36.60%. Given Lithia Motors’ stronger consensus rating and higher probable upside, analysts plainly believe Lithia Motors is more favorable than 1-800 FLOWERS.COM.

Summary

Lithia Motors beats 1-800 FLOWERS.COM on 11 of the 14 factors compared between the two stocks.

About 1-800 FLOWERS.COM

1-800-FLOWERS.COM, Inc. provides gifts for various occasions in the United States and internationally. It operates through three segments: Consumer Floral & Gifts, Gourmet Foods & Gift Baskets, and BloomNet. The company offers a range of products, including fresh-cut flowers, floral and fruit arrangements, plants, gifts, personalized products, dipped berries, popcorns, gourmet foods and gift baskets, cookies, chocolates, candies, wines, and gift-quality fruits. It offers its products and services through online platform under the 1-800-Flowers.com, 1-800-Baskets.com, Cheryl's Cookies, FruitBouquets.com, Harry & David, Moose Munch, The Popcorn Factory, Wolferman's Bakery, PersonalizationMall.com, Simply Chocolate, Vital Choice, DesignPac, Stock Yards, Shari's Berries, BloomNet, Napco, and Flowerama brand names. 1-800-FLOWERS.COM, Inc. was founded in 1976 and is headquartered in Jericho, New York.

About Lithia Motors

Lithia Motors, Inc. operates as an automotive retailer worldwide. It operates in two segments, Vehicle Operations and Financing Operations. The company’s Vehicle Operations segment sells new and used vehicles; provides parts, repair, and maintenance services; vehicle finance; and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles. The company sells its products and services through the Driveway and Greencars brand names through a network of locations, e-commerce platforms, and captive finance solutions. Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon.