Lowe’s Companies (NYSE:LOW – Get Free Report) and Tile Shop (NASDAQ:TTSH – Get Free Report) are both consumer cyclical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.
Valuation and Earnings
This table compares Lowe’s Companies and Tile Shop”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Lowe’s Companies | $84.02 billion | 1.88 | $7.73 billion | $12.45 | 22.24 |
Tile Shop | $359.68 million | 0.83 | $10.07 million | $0.21 | 31.81 |
Lowe’s Companies has higher revenue and earnings than Tile Shop. Lowe’s Companies is trading at a lower price-to-earnings ratio than Tile Shop, indicating that it is currently the more affordable of the two stocks.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Lowe’s Companies | 8.25% | -47.07% | 15.79% |
Tile Shop | 1.50% | 4.47% | 1.67% |
Insider & Institutional Ownership
74.1% of Lowe’s Companies shares are held by institutional investors. Comparatively, 36.7% of Tile Shop shares are held by institutional investors. 0.3% of Lowe’s Companies shares are held by insiders. Comparatively, 36.6% of Tile Shop shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Lowe’s Companies and Tile Shop, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Lowe’s Companies | 0 | 11 | 13 | 0 | 2.54 |
Tile Shop | 0 | 0 | 0 | 0 | N/A |
Lowe’s Companies presently has a consensus price target of $268.42, indicating a potential downside of 3.04%. Given Lowe’s Companies’ higher probable upside, equities research analysts plainly believe Lowe’s Companies is more favorable than Tile Shop.
Volatility & Risk
Lowe’s Companies has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Tile Shop has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.
Summary
Lowe’s Companies beats Tile Shop on 9 of the 13 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 Tile Shop
Tile Shop Holdings, Inc. operates as a specialty retailer of natural stone and man-made tiles, setting and maintenance materials, and related accessories in the United States. The company offers natural stone products, including marble, travertine, granite, quartz, sandstone, slate, and onyx tiles; and man-made products, comprises ceramic, porcelain, glass, cement, wood look, and metal and luxury vinyl tile. It also manufactures setting and maintenance materials, such as thinset, grout, and sealers; and accessories which includes installation tools, shower and bath shelves, drains, and related products. In addition, the company offers customers delivery service through third-party freight providers. It sells its products under the Superior Adhesives & Chemicals, Superior Tools & Supplies, Rush River, and Fired Earth brands. Tile Shop Holdings, Inc. was founded in 1985 and is headquartered in Plymouth, Minnesota.
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