Shoe Carnival (NASDAQ:SHOE – Get Free Report) and Lulu’s Fashion Lounge (NASDAQ:LVLU – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Valuation & Earnings
This table compares Shoe Carnival and Lulu’s Fashion Lounge”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shoe Carnival | $1.14 billion | 0.31 | $52.27 million | $0.88 | 14.53 |
| Lulu’s Fashion Lounge | $282.28 million | 0.13 | -$13.71 million | ($2.94) | -4.34 |
Volatility and Risk
Shoe Carnival has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Lulu’s Fashion Lounge has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for Shoe Carnival and Lulu’s Fashion Lounge, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shoe Carnival | 1 | 1 | 0 | 1 | 2.33 |
| Lulu’s Fashion Lounge | 1 | 0 | 0 | 0 | 1.00 |
Shoe Carnival currently has a consensus target price of $22.00, suggesting a potential upside of 72.01%. Given Shoe Carnival’s stronger consensus rating and higher probable upside, research analysts clearly believe Shoe Carnival is more favorable than Lulu’s Fashion Lounge.
Insider and Institutional Ownership
66.0% of Shoe Carnival shares are owned by institutional investors. Comparatively, 73.8% of Lulu’s Fashion Lounge shares are owned by institutional investors. 33.6% of Shoe Carnival shares are owned by company insiders. Comparatively, 7.8% of Lulu’s Fashion Lounge shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Shoe Carnival and Lulu’s Fashion Lounge’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Shoe Carnival | 2.20% | 5.32% | 3.08% |
| Lulu’s Fashion Lounge | -3.17% | -946.15% | -8.73% |
Summary
Shoe Carnival beats Lulu’s Fashion Lounge on 13 of the 14 factors compared between the two stocks.
About Shoe Carnival
Shoe Carnival, Inc., together with its subsidiaries, operates as a family footwear retailer in the United States. The company offers range of dress, casual, work, and athletic shoes, as well as sandals and boots for men, women, and children; and various accessories. The company also operates stores, and sells its products through online shopping at shoecarnival.com, as well as through mobile app. Shoe Carnival, Inc. was founded in 1978 and is headquartered in Evansville, Indiana.
About Lulu’s Fashion Lounge
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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