Head-To-Head Survey: Lithia Motors (NYSE:LAD) versus Lovesac (NASDAQ:LOVE)

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

Profitability

This table compares Lithia Motors and Lovesac’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lithia Motors	2.06%	12.05%	3.03%
Lovesac	2.56%	2.57%	1.02%

Insider & Institutional Ownership

91.3% of Lovesac shares are owned by institutional investors. 1.1% of Lithia Motors shares are owned by company insiders. Comparatively, 7.8% of Lovesac shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Lithia Motors and Lovesac”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lithia Motors	$37.63 billion	0.18	$819.60 million	$34.76	8.79
Lovesac	$697.11 million	0.33	$4.07 million	$1.22	13.19

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

Risk and Volatility

Lithia Motors has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Lovesac has a beta of 2.12, indicating that its share price is 112% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Lithia Motors and Lovesac, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lithia Motors	0	6	6	0	2.50
Lovesac	0	1	3	0	2.75

Lithia Motors currently has a consensus price target of $393.80, indicating a potential upside of 28.83%. Lovesac has a consensus price target of $21.33, indicating a potential upside of 32.59%. Given Lovesac’s stronger consensus rating and higher possible upside, analysts clearly believe Lovesac is more favorable than Lithia Motors.

Summary

Lovesac beats Lithia Motors on 8 of the 14 factors compared between the two stocks.

About Lithia Motors

Lithia Motors, Inc. is an automotive retailer that sells new and pre-owned vehicles through a network of franchised dealerships. Its dealerships represent a range of vehicle manufacturers and also offer related products and services, including parts, maintenance and repairs, and vehicle financing and insurance options. The company traces its roots to a single dealership established in Ashland, Oregon, in 1946. It has since expanded its retail operations across the United States, Canada and the United Kingdom.

About Lovesac

The Lovesac Company designs, manufactures and sells furniture and home accessories focused on modularity, durability and reconfigurability. Its primary products include Sactionals, modular seating systems that can be arranged in multiple configurations, and Sacs, oversized beanbag-style seats made with specialized foam filling. The company also offers complementary products such as pillows, blankets, tables, covers and other accessories. Lovesac sells its products through an omnichannel model that includes company-operated showrooms, its e-commerce website and select third-party retail partners.