Critical Comparison: PetMed Express (NASDAQ:PETS) and Lulu’s Fashion Lounge (NASDAQ:LVLU)

PetMed Express (NASDAQ:PETSGet Free Report) and Lulu’s Fashion Lounge (NASDAQ:LVLUGet Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

73.3% of PetMed Express shares are held by institutional investors. Comparatively, 73.8% of Lulu’s Fashion Lounge shares are held by institutional investors. 1.3% of PetMed Express shares are held by insiders. Comparatively, 7.8% of Lulu’s Fashion Lounge shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

PetMed Express has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Lulu’s Fashion Lounge has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for PetMed Express and Lulu’s Fashion Lounge, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PetMed Express 1 1 0 0 1.50
Lulu’s Fashion Lounge 1 0 0 0 1.00

Profitability

This table compares PetMed Express and Lulu’s Fashion Lounge’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PetMed Express -17.34% -91.69% -35.15%
Lulu’s Fashion Lounge -3.17% -946.15% -8.73%

Valuation and Earnings

This table compares PetMed Express and Lulu’s Fashion Lounge”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PetMed Express $179.02 million 0.21 -$57.29 million ($1.38) -1.28
Lulu’s Fashion Lounge $261.95 million 0.15 -$13.71 million ($2.94) -4.77

Lulu’s Fashion Lounge has higher revenue and earnings than PetMed Express. Lulu’s Fashion Lounge is trading at a lower price-to-earnings ratio than PetMed Express, indicating that it is currently the more affordable of the two stocks.

About PetMed Express

(Get Free Report)

PetMed Express, Inc., together with its subsidiaries, operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, health products, and other supplies for dogs, cats, and horses. It offers non-prescription medications and supplies, such as flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and household pet supplies; and prescription medications, including heartworm preventatives, flea and tick preventatives, arthritis, dermatitis, thyroid, diabetes, pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes. The company also sells food, beds, crates, stairs, and other pet supplies. It sells its products through its Internet website; mobile app; customer support center; and direct mail/print, which includes brochures and postcards. The company was incorporated in 1996 and is headquartered in Delray Beach, Florida.

About Lulu’s Fashion Lounge

(Get Free Report)

Lulu’s Fashion Lounge Holdings, Inc. engages in providing an online website for clothing. It offers retailing of women’s clothing, shoes, and accessories. The company was founded in 1996 and is headquartered in Chico, CA.

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