Analyzing Lowe’s Companies (NYSE:LOW) and Grabagun Digital (NYSE:PEW)

Lowe’s Companies (NYSE:LOW) and Grabagun Digital (NYSE:PEW) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for Lowe’s Companies and Grabagun Digital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lowe’s Companies	2	11	23	0	2.58
Grabagun Digital	1	0	0	0	1.00

Lowe’s Companies presently has a consensus price target of $263.67, suggesting a potential upside of 18.22%. Given Lowe’s Companies’ stronger consensus rating and higher probable upside, equities analysts plainly believe Lowe’s Companies is more favorable than Grabagun Digital.

Profitability

This table compares Lowe’s Companies and Grabagun Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lowe’s Companies	7.51%	-67.96%	13.31%
Grabagun Digital	N/A	-5.89%	-4.94%

Volatility and Risk

Lowe’s Companies has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Grabagun Digital has a beta of -0.07, indicating that its stock price is 107% less volatile than the S&P 500.

Insider & Institutional Ownership

74.1% of Lowe’s Companies shares are owned by institutional investors. Comparatively, 4.8% of Grabagun Digital shares are owned by institutional investors. 0.3% of Lowe’s Companies shares are owned by company insiders. Comparatively, 27.8% of Grabagun Digital shares are owned by company 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.

Earnings and Valuation

This table compares Lowe’s Companies and Grabagun Digital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lowe’s Companies	$86.29 billion	1.45	$6.65 billion	$11.83	18.85
Grabagun Digital	$99.05 million	0.79	-$2.51 million	($0.17)	-15.56

Lowe’s Companies has higher revenue and earnings than Grabagun Digital. Grabagun Digital is trading at a lower price-to-earnings ratio than Lowe’s Companies, indicating that it is currently the more affordable of the two stocks.

Summary

Lowe’s Companies beats Grabagun Digital on 12 of the 14 factors compared between the two stocks.

About Lowe’s Companies

Lowe’s Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical. In addition, the company offers installation services through independent contractors in various product categories; and extended protection plans and repair services. It sells its national brand-name merchandise and private brand products to professional customers, homeowners, renters, businesses, and government. The company also sells its products through Lowes.com website; and through mobile applications. Lowe’s Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.

About Grabagun Digital

GrabAGun.com is an online retailer of firearms, ammunition and related accessories. GrabAGun.com, formerly known as Colombier Acquisition Corp. II, is based in COPPELL, Texas.