Financial Review: Cache (OTCMKTS:CACH) & Wayfair (NYSE:W)

Wayfair (NYSE:W) and Cache (OTCMKTS:CACH) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Profitability

This table compares Wayfair and Cache’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wayfair	-2.49%	-3.40%	3.06%
Cache	N/A	N/A	N/A

Insider & Institutional Ownership

89.7% of Wayfair shares are owned by institutional investors. 18.4% of Wayfair shares are owned by company insiders. Comparatively, 23.0% of Cache 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.

Valuation & Earnings

This table compares Wayfair and Cache”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wayfair	$12.90 billion	1.06	-$313.00 million	($2.46)	-41.95
Cache	N/A	N/A	N/A	N/A	N/A

Cache has lower revenue, but higher earnings than Wayfair.

Analyst Recommendations

This is a summary of recent ratings and price targets for Wayfair and Cache, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wayfair	1	11	18	1	2.61
Cache	0	0	0	0	0.00

Wayfair currently has a consensus price target of $119.70, indicating a potential upside of 15.98%. Given Wayfair’s stronger consensus rating and higher possible upside, research analysts clearly believe Wayfair is more favorable than Cache.

Summary

Wayfair beats Cache on 7 of the 10 factors compared between the two stocks.

About Wayfair

Wayfair Inc. provides e-commerce business in the United States and internationally. The company offers approximately thirty million products for the home sector. It offers online selections of furniture, décor, housewares, and home improvement products through its sites consisting of Wayfair, Joss & Main, AllModern, Birch Lane, Perigold, and Wayfair Professional. The company offers its products under the Three Posts and Mercury Row brand name. The company was founded in 2002 and is headquartered in Boston, Massachusetts.

About Cache

Cache, Inc., together with its subsidiaries, operates as a mall-based and online woman’s specialty retailer of apparel and accessories in the United States. The company designs and markets sportswear, such as tops, sweaters, and jackets and bottoms for day or evening events; dresses ranges from shorter lengths to long for day, evening, and events; and accessories, including jewelry, belts, scarves, and handbags under the Cache brand name. The company was founded in 1975 and is headquartered in New York, New York.