Lulu’s Fashion Lounge (NASDAQ:LVLU) vs. Tilly’s (NYSE:TLYS) Head-To-Head Survey

Tilly’s (NYSE:TLYS) and Lulu’s Fashion Lounge (NASDAQ:LVLU) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Risk and Volatility

Tilly’s has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Lulu’s Fashion Lounge has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.

Earnings & Valuation

This table compares Tilly’s 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
Tilly’s	$569.45 million	0.09	-$46.23 million	($1.14)	-1.43
Lulu’s Fashion Lounge	$315.89 million	0.18	-$55.29 million	($16.16)	-1.28

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tilly’s	-6.24%	-39.59%	-10.17%
Lulu’s Fashion Lounge	-15.83%	-251.91%	-15.75%

Institutional and Insider Ownership

76.4% of Tilly’s shares are held by institutional investors. Comparatively, 73.8% of Lulu’s Fashion Lounge shares are held by institutional investors. 2.8% of Tilly’s shares are held by insiders. Comparatively, 6.8% of Lulu’s Fashion Lounge shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Tilly’s and Lulu’s Fashion Lounge, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tilly’s	1	4	0	0	1.80
Lulu’s Fashion Lounge	1	1	0	0	1.50

Tilly’s presently has a consensus price target of $2.25, suggesting a potential upside of 38.12%. Lulu’s Fashion Lounge has a consensus price target of $15.00, suggesting a potential downside of 27.29%. Given Tilly’s’ stronger consensus rating and higher probable upside, analysts plainly believe Tilly’s is more favorable than Lulu’s Fashion Lounge.

Summary

Tilly’s beats Lulu’s Fashion Lounge on 10 of the 13 factors compared between the two stocks.

About Tilly’s

Tilly’s, Inc. engages in the retail of casual apparel, footwear, and accessories. Its stores are located in retail centers, including malls, lifestyle centers, power centers, community centers, outlet centers, and street-front locations. The company was founded by Hezy Shaked and Tilly Levine in 1982 and is headquartered in Irvine, CA.

About Lulu’s Fashion Lounge

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.