NaaS Technology (NASDAQ:NAAS – Get Free Report) and Lovesac (NASDAQ:LOVE – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.
Analyst Ratings
This is a summary of current ratings and price targets for NaaS Technology and Lovesac, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NaaS Technology | 1 | 0 | 0 | 0 | 1.00 |
| Lovesac | 1 | 0 | 4 | 0 | 2.60 |
Lovesac has a consensus target price of $22.67, indicating a potential upside of 30.31%. Given Lovesac’s stronger consensus rating and higher probable upside, analysts plainly believe Lovesac is more favorable than NaaS Technology.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NaaS Technology | $125.14 million | 0.29 | -$62.77 million | ($87.84) | -0.04 |
| Lovesac | $697.11 million | 0.37 | $4.07 million | $0.26 | 66.90 |
Lovesac has higher revenue and earnings than NaaS Technology. NaaS Technology is trading at a lower price-to-earnings ratio than Lovesac, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
NaaS Technology has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Lovesac has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500.
Profitability
This table compares NaaS Technology and Lovesac’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NaaS Technology | N/A | N/A | N/A |
| Lovesac | 0.55% | 1.88% | 0.75% |
Institutional & Insider Ownership
1.8% of NaaS Technology shares are held by institutional investors. Comparatively, 91.3% of Lovesac shares are held by institutional investors. 18.0% of NaaS Technology shares are held by insiders. Comparatively, 7.8% of Lovesac shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Lovesac beats NaaS Technology on 13 of the 14 factors compared between the two stocks.
About NaaS Technology
NaaS Technology Inc. provides electric vehicle (EV) charging services in China. The company offers integrated online EV charging solutions to charging stations, including mobility connectivity services through Kuaidian; SaaS products, such as traffic support and management, marketing, payment, chargers’ management, order management, load management, and membership management. It also provides offline EV charging solutions comprising site selection, hardware procurement, engineering, procurement, and construction, station maintenance, energy storage, and customer support services. In addition, the company offers electricity procurement services to charging stations, as well as other amenities and ancillary services, such as vending machines, massage chairs, and car wash tunnels. It serves charger manufacturers, EV OEMS, and end-users. NaaS Technology Inc. is headquartered in Beijing, China.
About Lovesac
The Lovesac Company designs, manufactures, and sells furniture. It offers sactionals, such as seats and sides; sacs, including foam beanbag chairs; and other products comprising drink holders, footsac blankets, decorative pillows, fitted seat tables, and ottomans. The company markets its products primarily through www.lovesac.com website, as well as showrooms at top tier malls, lifestyle centers, mobile concierges, kiosks, and street locations in 41 states in the United States; and in store pop-up- shops and shop-in-shops, and barter inventory transactions. The Lovesac Company was founded in 1995 and is based in Stamford, Connecticut.
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