Kirkland’s (NASDAQ:KIRK – Get Free Report) and Lovesac (NASDAQ:LOVE – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.
Institutional & Insider Ownership
15.4% of Kirkland’s shares are owned by institutional investors. Comparatively, 91.3% of Lovesac shares are owned by institutional investors. 5.0% of Kirkland’s shares are owned by company insiders. Comparatively, 12.3% of Lovesac shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Kirkland’s and Lovesac’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kirkland’s | -6.06% | N/A | -8.47% |
| Lovesac | 1.99% | 6.70% | 2.74% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kirkland’s | $441.36 million | 0.06 | -$23.13 million | ($1.73) | -0.63 |
| Lovesac | $686.36 million | 0.39 | $11.56 million | $0.70 | 26.55 |
Lovesac has higher revenue and earnings than Kirkland’s. Kirkland’s is trading at a lower price-to-earnings ratio than Lovesac, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Kirkland’s has a beta of 2.48, indicating that its stock price is 148% more volatile than the S&P 500. Comparatively, Lovesac has a beta of 2.3, indicating that its stock price is 130% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Kirkland’s and Lovesac, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kirkland’s | 0 | 0 | 1 | 1 | 3.50 |
| Lovesac | 0 | 0 | 5 | 0 | 3.00 |
Kirkland’s presently has a consensus target price of $4.50, indicating a potential upside of 310.96%. Lovesac has a consensus target price of $30.40, indicating a potential upside of 63.57%. Given Kirkland’s’ stronger consensus rating and higher possible upside, research analysts plainly believe Kirkland’s is more favorable than Lovesac.
Summary
Lovesac beats Kirkland’s on 11 of the 15 factors compared between the two stocks.
About Kirkland’s
Kirkland’s, Inc. operates as a specialty retailer of home décor and furnishings in the United States. Its stores provide various merchandise, including holiday décor, furniture, textiles, ornamental wall décor, decorative accessories, art, mirrors, home fragrance, lighting, floral, housewares, outdoor, and gifts. The company operates its stores under the Kirkland’s, Kirkland’s Home, Kirkland’s Home Outlet, Kirkland’s Outlet, and Kirkland Collection names. It also operates an e-commerce website, kirklands.com. The company was founded in 1966 and is headquartered in Brentwood, Tennessee.
About Lovesac
The Lovesac Company designs, manufactures, and sells furniture. It offers sactionals, such as seats and sides; sacs, including foam beanbag chairs; and other products comprising drink holders, footsac blankets, decorative pillows, fitted seat tables, and ottomans. The company markets its products primarily through www.lovesac.com website, as well as showrooms at top tier malls, lifestyle centers, mobile concierges, kiosks, and street locations in 41 states in the United States; and in store pop-up- shops and shop-in-shops, and barter inventory transactions. The Lovesac Company was founded in 1995 and is based in Stamford, Connecticut.
Receive News & Ratings for Kirkland's Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kirkland's and related companies with MarketBeat.com's FREE daily email newsletter.
