Critical Analysis: Giftify (NASDAQ:GIFT) & Ollie’s Bargain Outlet (NASDAQ:OLLI)

Ollie’s Bargain Outlet (NASDAQ:OLLI) and Giftify (NASDAQ:GIFT) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Ollie’s Bargain Outlet and Giftify, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ollie’s Bargain Outlet	0	4	13	0	2.76
Giftify	1	1	0	0	1.50

Ollie’s Bargain Outlet presently has a consensus price target of $106.13, suggesting a potential upside of 11.37%. Given Ollie’s Bargain Outlet’s stronger consensus rating and higher possible upside, equities analysts plainly believe Ollie’s Bargain Outlet is more favorable than Giftify.

Earnings and Valuation

This table compares Ollie’s Bargain Outlet and Giftify”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ollie’s Bargain Outlet	$2.79 billion	2.03	$240.60 million	$4.48	21.27
Giftify	$83.18 million	0.22	-$10.49 million	($0.23)	-2.23

Ollie’s Bargain Outlet has higher revenue and earnings than Giftify. Giftify is trading at a lower price-to-earnings ratio than Ollie’s Bargain Outlet, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Ollie’s Bargain Outlet has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Giftify has a beta of -1.51, meaning that its share price is 251% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ollie’s Bargain Outlet	9.79%	14.54%	9.23%
Giftify	-8.82%	-35.58%	-24.92%

Summary

Ollie’s Bargain Outlet beats Giftify on 11 of the 11 factors compared between the two stocks.

About Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. operates Ollie’s Bargain Outlet, a U.S. discount retailer that sells brand-name merchandise at value-oriented prices. Its stores offer a changing assortment of products, including housewares, food, books, toys, flooring, seasonal goods, electronics, health and beauty products, and apparel. The company’s closeout-focused buying model allows it to offer merchandise acquired from manufacturers and other suppliers, including excess inventory and discontinued products.

About Giftify

Giftify, Inc. (NASDAQ:GIFT) is a technology company that provides digital gift card, loyalty and customer-engagement solutions for shopping centers and retail destinations. Its platform is designed to help malls and other commercial properties issue and manage gift cards while encouraging visits and spending across participating retailers. Giftify’s services include branded digital gift cards, rewards programs, promotional campaigns and tools that enable retailers and property owners to engage shoppers.