Contrasting Gaia (GAIA) & Ollie’s Bargain Outlet Holdings (OLLI)

Gaia (NASDAQ: GAIA) and Ollie’s Bargain Outlet Holdings (NASDAQ:OLLI) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitabiliy, earnings and valuation.

Risk & Volatility

Gaia has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet Holdings has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.

Institutional & Insider Ownership

31.2% of Gaia shares are held by institutional investors. Comparatively, 95.2% of Ollie’s Bargain Outlet Holdings shares are held by institutional investors. 42.8% of Gaia shares are held by company insiders. Comparatively, 22.3% of Ollie’s Bargain Outlet Holdings shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Gaia and Ollie’s Bargain Outlet Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gaia $19.20 million 8.72 -$15.54 million $5.91 1.87
Ollie’s Bargain Outlet Holdings $924.20 million 2.71 $119.57 million $1.06 38.63

Ollie’s Bargain Outlet Holdings has higher revenue and earnings than Gaia. Gaia 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Gaia and Ollie’s Bargain Outlet Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gaia 0 0 1 0 3.00
Ollie’s Bargain Outlet Holdings 0 3 3 0 2.50

Gaia currently has a consensus target price of $17.00, suggesting a potential upside of 53.85%. Ollie’s Bargain Outlet Holdings has a consensus target price of $40.25, suggesting a potential downside of 1.71%. Given Gaia’s stronger consensus rating and higher possible upside, analysts plainly believe Gaia is more favorable than Ollie’s Bargain Outlet Holdings.

Profitability

This table compares Gaia and Ollie’s Bargain Outlet Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gaia 460.97% -13.94% -12.48%
Ollie’s Bargain Outlet Holdings 7.25% 10.11% 6.39%

Summary

Gaia beats Ollie’s Bargain Outlet Holdings on 7 of the 13 factors compared between the two stocks.

Gaia Company Profile

Gaia, Inc., formerly Gaiam, Inc., is engaged in providing global digital video subscription service. The Company is a global digital video streaming service and online community delivering curated media to its subscribers in over 120 countries. It provides its members access to approximately 7,000 video titles. Its video content is available to its subscribers through online digital streaming on virtually any Internet-connected device on a commercial-free basis. In addition to streaming, the Company’s subscribers can download its video content to their devices, so they can view its content without being actively connected to the Internet. Through the Gaia service, the Company’s subscribers have access to a library of inspiring films, personal growth-related content, documentaries, interviews, yoga classes and fitness. The Company has also created a fitness and yoga-focused version of its video service. The Company also operates a digital versatile disc (DVD) subscription club.

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.

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