Head to Head Comparison: Ollie’s Bargain Outlet (NASDAQ:OLLI) & L’Oreal (OTCMKTS:LRLCY)

Ollie’s Bargain Outlet (NASDAQ:OLLI) and L’Oreal (OTCMKTS:LRLCY) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Volatility and Risk

Ollie’s Bargain Outlet has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, L’Oreal has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Insider & Institutional Ownership

0.4% of L’Oreal shares are owned by institutional investors. 0.9% of Ollie’s Bargain Outlet shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Ollie’s Bargain Outlet and L’Oreal”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ollie’s Bargain Outlet	$2.27 billion	3.48	$199.76 million	$3.45	37.39
L’Oreal	$47.06 billion	4.98	$6.93 billion	N/A	N/A

L’Oreal has higher revenue and earnings than Ollie’s Bargain Outlet.

Analyst Recommendations

This is a breakdown of recent ratings for Ollie’s Bargain Outlet and L’Oreal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ollie’s Bargain Outlet	0	5	9	0	2.64
L’Oreal	2	4	1	2	2.33

Ollie’s Bargain Outlet presently has a consensus target price of $144.15, indicating a potential upside of 11.75%. Given Ollie’s Bargain Outlet’s stronger consensus rating and higher possible upside, analysts clearly believe Ollie’s Bargain Outlet is more favorable than L’Oreal.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ollie’s Bargain Outlet	8.74%	12.66%	8.20%
L’Oreal	N/A	N/A	N/A

Summary

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

About Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.

About L’Oreal

L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. The company operates through four divisions: Consumer Products, L'oréal Luxe, Professional Products, and Dermatological Beauty. It offers skincare, make-up, hair colourants, haircare, perfumes, and hygiene products. The company provides its products under the L'Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Stylenanda, Essie, Dark & Lovely, Mixa, Magic Mask, Niley, Lancôme, Yves Saint Laurent, Armani, Kiehl's Since 1851, Helena Rubinstein, Biotherm, Shu Uemura, IT Cosmetics, Ralph Lauren Fragrance, Urban Decay, Mugler, Valentino, Viktor&Rolf, Azzaro, Prada, Cacharel, Maison Margela Fragrance, Diesel, Yue Sai, Atelier Colonge, Carita, Takami, Aesop, L'Oréal Professionnel Paris, Kérastase, Redken, Matrix, Pureology, Pulp Riot, La Roche-Posay, Vichy, CeraVe, SkinCeuticals, and Skinbetter Science brands. It sells its products through distribution channels, such as hair salons, local stores, e-commerce, travel retail, mass market retail, department store perfumeries, pharmacies, drug stores, medi-spas, and free-standing stores. L'Oréal S.A. was founded in 1909 and is headquartered in Clichy, France.