Lands’ End (NASDAQ: LE) and Citi Trends (NASDAQ:CTRN) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.
Citi Trends pays an annual dividend of $0.32 per share and has a dividend yield of 1.6%. Lands’ End does not pay a dividend. Citi Trends pays out 35.2% of its earnings in the form of a dividend.
This table compares Lands’ End and Citi Trends’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Lands’ End and Citi Trends’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lands’ End||$1.34 billion||0.29||$39.65 million||($3.55)||-3.42|
|Citi Trends||$712.38 million||0.41||$35.16 million||$0.91||22.54|
Lands’ End has higher revenue and earnings than Citi Trends. Lands’ End is trading at a lower price-to-earnings ratio than Citi Trends, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Lands’ End and Citi Trends, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lands’ End presently has a consensus price target of $15.00, indicating a potential upside of 23.46%. Given Lands’ End’s higher probable upside, equities research analysts clearly believe Lands’ End is more favorable than Citi Trends.
Volatility & Risk
Lands’ End has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Citi Trends has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.
Institutional and Insider Ownership
60.5% of Lands’ End shares are held by institutional investors. Comparatively, 90.8% of Citi Trends shares are held by institutional investors. 0.5% of Lands’ End shares are held by insiders. Comparatively, 4.6% of Citi Trends shares are held by 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.
Citi Trends beats Lands’ End on 9 of the 13 factors compared between the two stocks.
Lands’ End Company Profile
Lands’ End, Inc. (Lands’ End) is a multi-channel retailer of casual clothing, accessories and footwear, as well as home products. The Company operates through two segments: Direct and Retail. The Company offers products through catalogs, online at www.landsend.com. The Direct segment sells products through the Company’s e-commerce Websites, international Websites and direct mail catalogs. The Retail segment sells products and services through Lands’ End Shops at Sears across the United States, the Company’s standalone Lands’ End Inlet stores and international shop-in-shops. The Company’s product categories include Apparel and Non-apparel. The Non-apparel category offers accessories, footwear and home goods. The Company provides embroidery, monogramming, gift wrapping, shipping and other services. In addition, the Company offers sheets and pillowcases, duvet covers and comforters, blankets and throws, mattress pads, towels, rugs and mats, school uniforms and shower curtains.
Citi Trends Company Profile
Citi Trends, Inc. is a retailer of urban fashion apparel and accessories. The Company’s segment is retail operations. The Company operates approximately 520 stores in both urban and rural markets in over 30 states. The Company offers products under its brands, such as Citi Steps and Red Ape. The Company’s merchandise includes apparel, accessories and home. Within apparel, the Company offers fashion sportswear for men, women and children, including offerings for newborns, infants, toddlers, boys and girls. Accessories include handbags, jewelry, footwear, belts, intimate apparel, scrubs and sleepwear. The Company’s home merchandise includes decorative home product, functional home product, beauty, books, toys and electronic accessories. The Company sources its merchandise from approximately 1,700 vendors, consisting of domestic manufacturers and importers.
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