Contrasting Ollie’s Bargain Outlet (NASDAQ:OLLI) and Warby Parker (NYSE:WRBY)

Warby Parker (NYSE:WRBY) and Ollie’s Bargain Outlet (NASDAQ:OLLI) are both mid-cap consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Profitability

This table compares Warby Parker and Ollie’s Bargain Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warby Parker	0.08%	1.96%	1.01%
Ollie’s Bargain Outlet	8.81%	12.86%	8.29%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Warby Parker and Ollie’s Bargain Outlet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warby Parker	0	6	11	0	2.65
Ollie’s Bargain Outlet	0	4	12	0	2.75

Warby Parker currently has a consensus target price of $27.38, suggesting a potential upside of 24.81%. Ollie’s Bargain Outlet has a consensus target price of $142.14, suggesting a potential upside of 24.96%. Given Ollie’s Bargain Outlet’s stronger consensus rating and higher possible upside, analysts clearly believe Ollie’s Bargain Outlet is more favorable than Warby Parker.

Volatility & Risk

Warby Parker has a beta of 2.05, suggesting that its share price is 105% more volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Valuation & Earnings

This table compares Warby Parker and Ollie’s Bargain Outlet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warby Parker	$850.58 million	2.73	-$20.39 million	$0.01	2,194.10
Ollie’s Bargain Outlet	$2.27 billion	3.07	$199.76 million	$3.62	31.42

Ollie’s Bargain Outlet has higher revenue and earnings than Warby Parker. Ollie’s Bargain Outlet is trading at a lower price-to-earnings ratio than Warby Parker, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

93.2% of Warby Parker shares are held by institutional investors. 18.2% of Warby Parker shares are held by insiders. Comparatively, 0.8% of Ollie’s Bargain Outlet shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Ollie’s Bargain Outlet beats Warby Parker on 10 of the 14 factors compared between the two stocks.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.

About Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.