Analyzing Ollie’s Bargain Outlet (NASDAQ:OLLI) and LY (OTCMKTS:YAHOY)

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

Risk & Volatility

LY has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LY	4.39%	5.05%	1.65%
Ollie’s Bargain Outlet	9.79%	14.54%	9.23%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LY	$13.53 billion	1.66	$1.28 billion	$0.28	23.31
Ollie’s Bargain Outlet	$2.65 billion	2.11	$240.60 million	$4.48	21.00

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

Analyst Ratings

This is a summary of current ratings and price targets for LY and Ollie’s Bargain Outlet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LY	0	2	0	0	2.00
Ollie’s Bargain Outlet	0	4	13	0	2.76

Ollie’s Bargain Outlet has a consensus target price of $106.13, suggesting a potential upside of 12.81%. Given Ollie’s Bargain Outlet’s stronger consensus rating and higher possible upside, analysts clearly believe Ollie’s Bargain Outlet is more favorable than LY.

Summary

Ollie’s Bargain Outlet beats LY on 8 of the 12 factors compared between the two stocks.

About LY

LY Corporation is a Japanese internet services company that operates Yahoo! JAPAN and the LINE messaging platform. Its services include online search and news, digital advertising, e-commerce, and communications tools. The company was formed in October 2023 through the integration of Z Holdings, LINE Corporation, and Yahoo Japan. Its offerings primarily serve users and businesses in Japan, with LINE also used in other markets.

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.