Comparing Lands’ End (NASDAQ:LE) & Aritzia (OTCMKTS:ATZAF)

Lands’ End (NASDAQ:LE) and Aritzia (OTCMKTS:ATZAF) are both consumer cyclical companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Insider & Institutional Ownership

37.5% of Lands’ End shares are owned by institutional investors. 3.3% of Lands’ End shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Lands’ End and Aritzia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lands’ End	-8.87%	-1.70%	-0.56%
Aritzia	N/A	N/A	N/A

Earnings & Valuation

This table compares Lands’ End and Aritzia’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lands’ End	$1.47 billion	0.26	-$130.68 million	($4.09)	-2.99
Aritzia	N/A	N/A	N/A	N/A	N/A

Aritzia has lower revenue, but higher earnings than Lands’ End.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Lands’ End and Aritzia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lands’ End	0	0	1	0	3.00
Aritzia	0	2	2	0	2.50

Lands’ End currently has a consensus target price of $15.00, indicating a potential upside of 22.75%. Aritzia has a consensus target price of $45.75, indicating a potential upside of 87.65%. Given Aritzia’s higher possible upside, analysts clearly believe Aritzia is more favorable than Lands’ End.

Summary

Aritzia beats Lands’ End on 5 of the 9 factors compared between the two stocks.

About Lands’ End

Lands' End, Inc. operates as a digital retailer of casual clothing, swimwear, outerwear, accessories, footwear, and home products in the United States, Europe, Asia, and internationally. It operates through U.S. eCommerce, International, Outfitters, Third Party, and Retail segments. The company also sells uniform and logo apparel. It sells its products through e-commerce and company operated stores, as well as through third party distribution channels under the Lands' End, Lands' End Lighthouse, Squall, Tugless Tank, Drifter, Outrigger, and Marinac, Beach Living brands, as well as Supima, No-Gape, Starfish, Little Black Suit, Iron Knees, Hyde Park, Year' Rounder, ClassMate, Willis & Geiger, and ThermaCheck brands. Lands' End, Inc. was founded in 1963 and is headquartered in Dodgeville, Wisconsin.

About Aritzia

Aritzia Inc., together with its subsidiaries, designs and sells apparel and accessories for women in the United States and Canada. The company offers t-shirts and tops, sweaters, shirts and blouses, bodysuits, sweatshirts, blazers, jacket and coats, and dresses; pants, denim, leggings and bike shorts, sweatpants, skirts, shorts, sweatshorts, and jumpsuits and rompers; accessories, such as socks, hats, bags, scarves, belts, and intimates; swimwear; and shoes. It offers its products under the Wilfred, Wilfred Free, Babaton, The Group by Babaton, Babaton 101, Ten by Babaton, Tna, Little Moon, Sunday Best, Super World, TnAction, Denim Forum, Auxiliary, Talula, Tna x EMU, New Era, and Merrell brands. The company was formerly known as Aritzia Capital Corporation and changed its name to Aritzia Inc. in August 2016. Aritzia Inc. was founded in 1984 and is headquartered in Vancouver, Canada.