Valuation and Earnings
Ollie’s Bargain Outlet Holdings (NASDAQ: OLLI) and Cabela’s (NYSE:CAB) are both mid-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their profitabiliy, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.
This table compares Ollie’s Bargain Outlet Holdings and Cabela’s’ top-line revenue, earnings per share (EPS) and valuation.
Cabela’s has higher revenue and earnings than Ollie’s Bargain Outlet Holdings. Cabela’s is trading at a lower price-to-earnings ratio than Ollie’s Bargain Outlet Holdings, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Ollie’s Bargain Outlet Holdings and Cabela’s, as provided by MarketBeat.com.
Ollie’s Bargain Outlet Holdings currently has a consensus price target of $40.25, suggesting a potential downside of 8.42%. Cabela’s has a consensus price target of $64.30, suggesting a potential upside of 14.19%. Given Cabela’s’ higher possible upside, analysts plainly believe Cabela’s is more favorable than Ollie’s Bargain Outlet Holdings.
Risk and Volatility
Ollie’s Bargain Outlet Holdings has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, Cabela’s has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500.
Insider and Institutional Ownership
95.2% of Ollie’s Bargain Outlet Holdings shares are owned by institutional investors. Comparatively, 58.2% of Cabela’s shares are owned by institutional investors. 22.3% of Ollie’s Bargain Outlet Holdings shares are owned by company insiders. Comparatively, 21.0% of Cabela’s shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Ollie’s Bargain Outlet Holdings and Cabela’s’ net margins, return on equity and return on assets.
Ollie’s Bargain Outlet Holdings beats Cabela’s on 10 of the 14 factors compared between the two stocks.
Ollie’s Bargain Outlet Holdings Company Profile
Ollie’s Bargain Outlet Holdings, Inc. is a retailer of brand name merchandise. The Company offers customers a selection of brand name products, including food, housewares, books and stationery, bed and bath, floor coverings, electronics and toys. Its warehouse format stores feature a range of products, including hardware, personal healthcare, candy, clothing, sporting goods, pet and lawn and garden products. It offers cooking utensils, dishes, appliances, plastic containers, coffee, bottled non-carbonated beverages, coffee, bottled non-carbonated beverages, bedding, towels, curtains, laminate flooring, commercial and residential carpeting, air conditioners, home electronics, cellular accessories, dolls, action figures, puzzles, action figures, puzzles, educational toys, board games, luggage, automotive, seasonal, furniture, summer furniture and lawn and garden. As of January 28, 2017, it had operated 234 stores across 19 contiguous states in the Eastern half of the United States.
Cabela’s Company Profile
Cabela’s Incorporated is an omni-channel retailer of hunting, fishing, camping, shooting sports and related outdoor merchandise. The Company offers its customers a selection of national and regional brand products, including its Cabela’s brand. The Company’s segments include Merchandising and Financial Services. The Merchandising segment sells products and services through the Company’s retail stores, its e-commerce Websites (Cabelas.com and Cabelas.ca), and its catalogs. The United States merchandising and Canada merchandising operating segments have been aggregated into its Merchandising segment. The Financial Services segment issues co-branded credit cards, which are available through all of its channels. The Company’s product assortment includes merchandise and equipment for hunting, fishing, marine use, camping, and recreational sport shooting, along with casual and outdoor apparel and footwear, optics, vehicle accessories, and gifts and home furnishings with an outdoor theme.