Comparing L’Oreal (OTCMKTS:LRLCY) and Ollie’s Bargain Outlet (NASDAQ:OLLI)

L’Oreal (OTCMKTS:LRLCY) and Ollie’s Bargain Outlet (NASDAQ:OLLI) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Volatility and Risk

L’Oreal has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Insider and Institutional Ownership

0.4% of L’Oreal shares are held by institutional investors. 0.9% of Ollie’s Bargain Outlet shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares L’Oreal and Ollie’s Bargain Outlet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
L’Oreal	$47.06 billion	4.86	$6.93 billion	N/A	N/A
Ollie’s Bargain Outlet	$2.27 billion	3.36	$199.76 million	$3.45	36.12

L’Oreal has higher revenue and earnings than Ollie’s Bargain Outlet.

Profitability

This table compares L’Oreal and Ollie’s Bargain Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
L’Oreal	N/A	N/A	N/A
Ollie’s Bargain Outlet	8.74%	12.66%	8.20%

Analyst Ratings

This is a breakdown of current ratings and target prices for L’Oreal and Ollie’s Bargain Outlet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
L’Oreal	2	4	1	2	2.33
Ollie’s Bargain Outlet	0	5	9	0	2.64

Ollie’s Bargain Outlet has a consensus price target of $144.15, suggesting a potential upside of 15.69%. Given Ollie’s Bargain Outlet’s stronger consensus rating and higher probable upside, analysts plainly believe Ollie’s Bargain Outlet is more favorable than L’Oreal.

Summary

Ollie’s Bargain Outlet beats L’Oreal on 7 of the 13 factors compared between the two stocks.

About L’Oreal

L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. The company operates through four divisions: Consumer Products, L'oréal Luxe, Professional Products, and Dermatological Beauty. It offers skincare, make-up, hair colourants, haircare, perfumes, and hygiene products. The company provides its products under the L'Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Stylenanda, Essie, Dark & Lovely, Mixa, Magic Mask, Niley, Lancôme, Yves Saint Laurent, Armani, Kiehl's Since 1851, Helena Rubinstein, Biotherm, Shu Uemura, IT Cosmetics, Ralph Lauren Fragrance, Urban Decay, Mugler, Valentino, Viktor&Rolf, Azzaro, Prada, Cacharel, Maison Margela Fragrance, Diesel, Yue Sai, Atelier Colonge, Carita, Takami, Aesop, L'Oréal Professionnel Paris, Kérastase, Redken, Matrix, Pureology, Pulp Riot, La Roche-Posay, Vichy, CeraVe, SkinCeuticals, and Skinbetter Science brands. It sells its products through distribution channels, such as hair salons, local stores, e-commerce, travel retail, mass market retail, department store perfumeries, pharmacies, drug stores, medi-spas, and free-standing stores. L'Oréal S.A. was founded in 1909 and is headquartered in Clichy, France.

About Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.