Contrasting Lulu’s Fashion Lounge (NASDAQ:LVLU) and CarParts.com (NASDAQ:PRTS)

CarParts.com (NASDAQ:PRTSGet Free Report) and Lulu’s Fashion Lounge (NASDAQ:LVLUGet Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Institutional and Insider Ownership

75.3% of CarParts.com shares are held by institutional investors. Comparatively, 73.8% of Lulu’s Fashion Lounge shares are held by institutional investors. 6.6% of CarParts.com shares are held by insiders. Comparatively, 7.8% of Lulu’s Fashion Lounge shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

CarParts.com has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Lulu’s Fashion Lounge has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for CarParts.com and Lulu’s Fashion Lounge, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CarParts.com 1 1 0 0 1.50
Lulu’s Fashion Lounge 1 0 0 0 1.00

CarParts.com currently has a consensus target price of $6.00, suggesting a potential downside of 6.98%. Given CarParts.com’s stronger consensus rating and higher probable upside, equities analysts clearly believe CarParts.com is more favorable than Lulu’s Fashion Lounge.

Profitability

This table compares CarParts.com and Lulu’s Fashion Lounge’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CarParts.com -5.35% -47.19% -14.52%
Lulu’s Fashion Lounge -3.17% -946.15% -8.73%

Earnings & Valuation

This table compares CarParts.com and Lulu’s Fashion Lounge”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CarParts.com $547.53 million 0.10 -$50.44 million ($4.33) -1.49
Lulu’s Fashion Lounge $282.28 million 0.15 -$13.71 million ($2.94) -5.07

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

Summary

CarParts.com beats Lulu’s Fashion Lounge on 7 of the 13 factors compared between the two stocks.

About CarParts.com

(Get Free Report)

CarParts.com, Inc., together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines. It offers replacement parts, such as parts for the exterior of an automobile; mirror products; engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories. The company sells its products to individual customers through its flagship website www.carparts.com and app; online marketplaces, including third-party auction sites and shopping portals; and auto parts wholesale distributors. The company was formerly known as U.S. Auto Parts Network, Inc. and changed its name to CarParts.com, Inc. in July 2020. CarParts.com, Inc. was incorporated in 1995 and is headquartered in Torrance, California.

About Lulu’s Fashion Lounge

(Get Free Report)

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.

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