Reviewing Savers Value Village (NYSE:SVV) and Hour Loop (NASDAQ:HOUR)

Hour Loop (NASDAQ:HOUR) and Savers Value Village (NYSE:SVV) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Volatility and Risk

Hour Loop has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Savers Value Village has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Earnings & Valuation

This table compares Hour Loop and Savers Value Village”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hour Loop	$142.44 million	0.43	$1.71 million	$0.04	43.40
Savers Value Village	$1.74 billion	0.89	$22.64 million	$0.16	62.79

Savers Value Village has higher revenue and earnings than Hour Loop. Hour Loop is trading at a lower price-to-earnings ratio than Savers Value Village, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Hour Loop and Savers Value Village, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hour Loop	0	1	0	0	2.00
Savers Value Village	1	4	4	0	2.33

Savers Value Village has a consensus target price of $13.62, indicating a potential upside of 35.63%. Given Savers Value Village’s stronger consensus rating and higher probable upside, analysts clearly believe Savers Value Village is more favorable than Hour Loop.

Institutional and Insider Ownership

0.3% of Hour Loop shares are owned by institutional investors. Comparatively, 98.8% of Savers Value Village shares are owned by institutional investors. 95.0% of Hour Loop shares are owned by insiders. Comparatively, 3.5% of Savers Value Village shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Hour Loop and Savers Value Village’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hour Loop	1.14%	22.31%	6.60%
Savers Value Village	1.42%	14.58%	3.12%

Summary

Savers Value Village beats Hour Loop on 10 of the 14 factors compared between the two stocks.

About Hour Loop

Hour Loop, Inc., an online retailer, engages in e-commerce retailing in the United States. The company sells products in various categories, including home/garden décor, toys, kitchenware, apparels, and electronics products. It sells its products through hourloop.com, as well as third-party marketplaces. Hour Loop, Inc. was founded in 2013 and is headquartered in Redmond, Washington.

About Savers Value Village

Savers Value Village, Inc. sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Value Village Boutique, Village des Valeurs, Unique, and 2nd Avenue brands. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners and then processes, selects, prices, merchandises, and sells them in its stores. It serves retail and wholesale customers. The company was formerly known as S-Evergreen Holding LLC and changed its name to Savers Value Village, Inc. in January 2022. Savers Value Village, Inc. was founded in 1954 and is based in Bellevue, Washington.