Reviewing Lovesac (LOVE) and The Competition

Lovesac (NASDAQ:LOVE) is one of 285 publicly-traded companies in the “Specialty Retail” industry, but how does it compare to its competitors? We will compare Lovesac to similar businesses based on the strength of its earnings, risk, institutional ownership, analyst recommendations, profitability, dividends and valuation.

Insider & Institutional Ownership

91.3% of Lovesac shares are held by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are held by institutional investors. 7.8% of Lovesac shares are held by company insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Lovesac and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lovesac	2.56%	2.57%	1.02%
Lovesac Competitors	-3.67%	-13.85%	3.19%

Risk and Volatility

Lovesac has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500. Comparatively, Lovesac’s competitors have a beta of 1.91, indicating that their average share price is 91% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Lovesac and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lovesac	0	1	3	0	2.75
Lovesac Competitors	3663	15557	21589	586	2.46

Lovesac currently has a consensus price target of $21.33, indicating a potential upside of 24.48%. As a group, “Specialty Retail” companies have a potential upside of 7.80%. Given Lovesac’s stronger consensus rating and higher probable upside, analysts clearly believe Lovesac is more favorable than its competitors.

Earnings and Valuation

This table compares Lovesac and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lovesac	$697.11 million	$4.07 million	14.05
Lovesac Competitors	$7.07 billion	$386.47 million	32.10

Lovesac’s competitors have higher revenue and earnings than Lovesac. Lovesac is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Lovesac beats its competitors on 7 of the 13 factors compared.

Lovesac Company Profile

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.