Stein Mart (OTCMKTS:SMRTQ) & a.k.a. Brands (NYSE:AKA) Financial Review

Stein Mart (OTCMKTS:SMRTQ) and a.k.a. Brands (NYSE:AKA) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Profitability

This table compares Stein Mart and a.k.a. Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stein Mart	N/A	N/A	N/A
a.k.a. Brands	-5.24%	-23.52%	-6.31%

Earnings & Valuation

This table compares Stein Mart and a.k.a. Brands”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stein Mart	N/A	N/A	N/A	N/A	N/A
a.k.a. Brands	$600.21 million	0.17	-$31.43 million	($2.93)	-3.29

Stein Mart has higher earnings, but lower revenue than a.k.a. Brands.

Insider and Institutional Ownership

55.3% of a.k.a. Brands shares are held by institutional investors. 39.4% of Stein Mart shares are held by insiders. Comparatively, 17.6% of a.k.a. Brands shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Stein Mart and a.k.a. Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stein Mart	0	0	0	0	0.00
a.k.a. Brands	1	2	1	0	2.00

a.k.a. Brands has a consensus target price of $19.00, suggesting a potential upside of 96.89%. Given a.k.a. Brands’ stronger consensus rating and higher possible upside, analysts clearly believe a.k.a. Brands is more favorable than Stein Mart.

Summary

a.k.a. Brands beats Stein Mart on 5 of the 9 factors compared between the two stocks.

About Stein Mart

Stein Mart, Inc., a specialty omnichannel off-price retailer, offers designer and name-brand fashion apparels, home décor merchandise, accessories, and shoes at everyday discount prices in the United States. The company's stores also provides endless aisle, a mobile technology to locate products; a SMart Rewards loyalty program; co-branded and private label credit card programs; and electronic gift cards. As of June 3, 2020, it operated 281 stores in 30 states. The company also sells its products through an online retail selling site. Stein Mart, Inc. was founded in 1908 and is headquartered in Jacksonville, Florida. On August 12, 2020, Stein Mart, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida.

About a.k.a. Brands

a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. The company offers streetwear apparel, dresses, tops, bottoms, shoes, headwear, and accessories through its online stores under the Princess Polly, Petal & Pup, Culture Kings, and mnml brands. It also operates physical stores under the Culture Kings brand. The company was founded in 2018 and is headquartered in San Francisco, California.