Williams-Sonoma (NYSE:WSM – Get Free Report) and Driven Brands (NASDAQ:DRVN – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.
Profitability
This table compares Williams-Sonoma and Driven Brands’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Williams-Sonoma | 14.73% | 53.48% | 20.50% |
| Driven Brands | 8.61% | 24.13% | 5.03% |
Institutional and Insider Ownership
99.3% of Williams-Sonoma shares are held by institutional investors. Comparatively, 77.1% of Driven Brands shares are held by institutional investors. 1.1% of Williams-Sonoma shares are held by insiders. Comparatively, 4.4% of Driven Brands 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.
Risk and Volatility
Earnings and Valuation
This table compares Williams-Sonoma and Driven Brands”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Williams-Sonoma | $7.81 billion | 3.47 | $1.09 billion | $9.77 | 23.51 |
| Driven Brands | $1.86 billion | 1.05 | $140.16 million | $1.04 | 11.35 |
Williams-Sonoma has higher revenue and earnings than Driven Brands. Driven Brands is trading at a lower price-to-earnings ratio than Williams-Sonoma, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for Williams-Sonoma and Driven Brands, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Williams-Sonoma | 0 | 8 | 10 | 0 | 2.56 |
| Driven Brands | 1 | 8 | 6 | 2 | 2.53 |
Williams-Sonoma currently has a consensus price target of $245.56, suggesting a potential upside of 6.91%. Driven Brands has a consensus price target of $16.23, suggesting a potential upside of 37.54%. Given Driven Brands’ higher probable upside, analysts clearly believe Driven Brands is more favorable than Williams-Sonoma.
Summary
Williams-Sonoma beats Driven Brands on 12 of the 15 factors compared between the two stocks.
About Williams-Sonoma
Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home. It offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma Home brand, as well as home furnishings and decorative accessories under the Williams Sonoma lifestyle brand; and furniture, bedding, lighting, rugs, table essentials, and decorative accessories under the Pottery Barn brand. The company also provides home decor products under the West Elm brand; kids accessories under the Pottery Barn Kids brand; and an organic bedding to multi-purpose furniture under the Pottery Barn Teen brand. In addition, it offers made-to-order lighting, hardware, furniture, and home decors inspired by history under the Rejuvenation brand; personalized products and custom gifts under the Mark and Graham brand; and colorful and vintage-inspired heirloom products under the GreenRow, as well as operates a 3-D imaging and augmented reality platform for the home furnishings and décor industry under the Outward brand. The company markets its products through e-commerce websites, direct-mail catalogs, and retail stores. Williams-Sonoma, Inc. was founded in 1956 and is headquartered in San Francisco, California.
About Driven Brands
Driven Brands Holdings Inc., together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. It offers various services, such as paint, collision, glass, repair, car wash, oil change, and maintenance services. The company also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as training services to repair and maintenance, and paint and collision shops. It sells its products and services under the CARSTAR, IMO, MAACO, Meineke Car Care Centers, PH Vitres D’Autos, Take 5 Oil Change, Take 5 Car Wash, Auto Glass Now, Fix Auto USA, and 1-800-Radiator & A/C, Spire Supply, and Automotive Training Institute brands. The company was founded in 1972 and is headquartered in Charlotte, North Carolina.
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