Financial Analysis: Ceconomy (OTCMKTS:MTTRY) versus Luvu Brands (OTCMKTS:LUVU)

Luvu Brands (OTCMKTS:LUVU) and Ceconomy (OTCMKTS:MTTRY) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Volatility and Risk

Luvu Brands has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, Ceconomy has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Luvu Brands and Ceconomy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luvu Brands	0	0	0	0	0.00
Ceconomy	0	0	0	1	4.00

Valuation and Earnings

This table compares Luvu Brands and Ceconomy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luvu Brands	$24.69 million	0.08	-$450,000.00	($0.02)	-1.30
Ceconomy	$25.51 billion	0.10	-$38.73 million	$0.08	13.25

Luvu Brands has higher earnings, but lower revenue than Ceconomy. Luvu Brands is trading at a lower price-to-earnings ratio than Ceconomy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Luvu Brands and Ceconomy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luvu Brands	-5.42%	-58.93%	-14.04%
Ceconomy	0.71%	46.82%	2.53%

Summary

Ceconomy beats Luvu Brands on 9 of the 11 factors compared between the two stocks.

About Luvu Brands

Luvu Brands, Inc. designs, manufactures, and markets various consumer lifestyle products worldwide. The company offers sensuality and intimacy products under the Liberator brand; and bed therapy products, which assistive in relieving medical conditions associated with acid reflux, surgery recovery, and chronic pain under the Avana brand. It also provides daybeds, sofas, and beanbags made from virgin and re-purposed polyurethane foam under the Jaxx brand. In addition, the company is involved in the purchase and resale of products to e-merchants, retailers, and e-commerce sites, as well as provision of contract manufacturing and fulfillment services. It markets its products through various websites comprising liberator.com, jaxxliving.com, and avanacomfort.com, as well as through distributors, retailers, and e-tailers across various channels of adult, mass market, drug, and specialty accounts. The company was formerly known as Liberator, Inc. and changed its name to Luvu Brands, Inc. in November 2015. Luvu Brands, Inc. was incorporated in 1999 and is headquartered in Atlanta, Georgia.

About Ceconomy

Ceconomy AG, together with its subsidiaries, engages in the consumer electronics retail business. It operates stores under the MediaMarkt and Saturn brands. The company offers professional assistance for the installation, connection, and troubleshooting of electronic devices at home under the Deutsche Technikberatung brand. It operates in Germany, Austria, Switzerland, and Hungary, as well as in Western, Southern, and Eastern Europe. Ceconomy AG is based in Düsseldorf, Germany.