Stamps.com (NASDAQ: STMP) and Party City Holdco (NYSE:PRTY) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.
Risk & Volatility
Stamps.com has a beta of -0.04, meaning that its share price is 104% less volatile than the S&P 500. Comparatively, Party City Holdco has a beta of 2.66, meaning that its share price is 166% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for Stamps.com and Party City Holdco, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Party City Holdco||0||2||2||0||2.50|
Stamps.com presently has a consensus price target of $210.00, indicating a potential downside of 4.98%. Party City Holdco has a consensus price target of $17.33, indicating a potential upside of 50.07%. Given Party City Holdco’s higher probable upside, analysts plainly believe Party City Holdco is more favorable than Stamps.com.
Earnings & Valuation
This table compares Stamps.com and Party City Holdco’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Stamps.com||$419.64 million||8.90||$171.47 million||$6.17||35.82|
|Party City Holdco||$2.33 billion||0.59||$364.88 million||$0.96||12.03|
Party City Holdco has higher revenue and earnings than Stamps.com. Party City Holdco is trading at a lower price-to-earnings ratio than Stamps.com, indicating that it is currently the more affordable of the two stocks.
This table compares Stamps.com and Party City Holdco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Party City Holdco||4.97%||13.97%||4.09%|
Stamps.com beats Party City Holdco on 8 of the 12 factors compared between the two stocks.
Stamps.com Inc. is a provider of Internet-based mailing and shipping solutions in the United States. The Company offers mailing and shipping products and services to its customers under the Stamps.com, Endicia, ShipStation, ShipWorks and ShippingEasy brands. It operates through the Internet Mailing and Shipping Services segment. Under the Stamps.com and Endicia brands, customers use its United States Postal Service (USPS) only solutions to mail and ship a range of mail pieces and packages through the USPS. USPS mailing and shipping solutions enable users to print electronic postage directly onto envelopes, plain paper, or labels using only a standard personal computer, printer and Internet connection. The Company offers USPS mailing and shipping services, multi-carrier shipping services, mailing and shipping services, branded insurance and international postage solutions. The Company offers customized postage under the PhotoStamps and PictureItPostage brand names.
About Party City Holdco
Party City Holdco Inc. is a holding company with no operating assets or operations. As of December 31, 2016, the Company owned PC Nextco Holdings, LLC (PC Nextco), which owned PC Intermediate Holdings, Inc. (PC Intermediate). As of December 31, 2016, PC Intermediate owned Party City Holdings Inc. (PCHI). PCHI or its direct or indirect subsidiaries conduct all of its operating businesses. The Company operates through two segments: Retail and Wholesale. Its retail operations generate revenue primarily through the sale of its Amscan, Designware, Anagram and Costumes USA party supplies through its Party City stores, Halloween City stores and PartyCity.com. Its wholesale revenues are generated from the sale of party goods for all occasions, including paper and plastic tableware, accessories and novelties, costumes, metallic and latex balloons and stationery.
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