Lovesac (NASDAQ:LOVE) and Frasers Group (OTCMKTS:SDIPF) Head-To-Head Review
by Sarita Garza · The Markets DailyFrasers Group (OTCMKTS:SDIPF – Get Free Report) and Lovesac (NASDAQ:LOVE – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Insider & Institutional Ownership
22.5% of Frasers Group shares are held by institutional investors. Comparatively, 91.3% of Lovesac shares are held by institutional investors. 7.8% of Lovesac shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Frasers Group and Lovesac’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Frasers Group | N/A | N/A | N/A |
| Lovesac | 0.55% | 1.88% | 0.75% |
Valuation & Earnings
This table compares Frasers Group and Lovesac”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Frasers Group | N/A | N/A | N/A | $0.30 | 29.90 |
| Lovesac | $697.11 million | 0.36 | $4.07 million | $0.26 | 66.54 |
Lovesac has higher revenue and earnings than Frasers Group. Frasers Group is trading at a lower price-to-earnings ratio than Lovesac, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for Frasers Group and Lovesac, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Frasers Group | 1 | 0 | 0 | 0 | 1.00 |
| Lovesac | 1 | 0 | 4 | 0 | 2.60 |
Lovesac has a consensus target price of $22.67, suggesting a potential upside of 31.02%. Given Lovesac’s stronger consensus rating and higher probable upside, analysts plainly believe Lovesac is more favorable than Frasers Group.
Summary
Lovesac beats Frasers Group on 10 of the 11 factors compared between the two stocks.
About Frasers Group
Frasers Group Plc, together with its subsidiaries, retails sports and leisure clothing, footwear, equipment, accessories, and apparel through department stores, shops, and online in the United Kingdom, Europe, the United States, Asia, Oceania, and internationally. The company operates through four segments: UK Sports Retail, Premium Lifestyle, International Retail, and Wholesale & Licensing. It is also involved in the wholesale distribution and sale of sports and leisure clothing, footwear, equipment, and apparel; and licensing activities. The company offers its products under its own and third party brands, which include Slazenger, Everlast, Lonsdale, Karrimor, 18montrose, Evans Cycles, Flannels, Frasers, Game, House of Fraser, Jack Wills, Sofa.com, Sports Direct, USC, Cruise, and van mildert. The company was formerly known as Sports Direct International plc and changed its name to Frasers Group Plc in December 2019. Frasers Group Plc was founded in 1982 and is headquartered in Shirebrook, the United Kingdom. Frasers Group plc operates as a subsidiary of MASH Holdings Limited.
About Lovesac
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.