Connection (NASDAQ: CNXN) and Evine (NASDAQ:EVLV) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for Connection and Evine, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Connection 0 0 1 0 3.00
Evine 0 0 4 0 3.00

Connection presently has a consensus price target of $33.00, indicating a potential upside of 11.90%. Evine has a consensus price target of $2.09, indicating a potential upside of 84.73%. Given Evine’s higher possible upside, analysts clearly believe Evine is more favorable than Connection.

Insider and Institutional Ownership

41.3% of Connection shares are held by institutional investors. Comparatively, 37.9% of Evine shares are held by institutional investors. 57.1% of Connection shares are held by insiders. Comparatively, 6.1% of Evine shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Connection has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Evine has a beta of 2.54, suggesting that its share price is 154% more volatile than the S&P 500.

Earnings & Valuation

This table compares Connection and Evine’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Connection $2.91 billion 0.27 $54.85 million $1.84 16.03
Evine $648.22 million 0.11 $140,000.00 ($0.01) -113.00

Connection has higher revenue and earnings than Evine. Evine is trading at a lower price-to-earnings ratio than Connection, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Connection and Evine’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Connection 2.05% 11.19% 7.45%
Evine 0.02% 0.37% 0.11%

Summary

Connection beats Evine on 10 of the 13 factors compared between the two stocks.

About Connection

PC Connection, Inc., together with its subsidiaries, provides a range of information technology (IT) solutions. The company operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions. It offers IT products, such as computer systems, software and peripheral equipment, networking communications, and other products and accessories. The company also provides services comprising design, configuration, and implementation of IT solutions. In addition, publishes Connected, a quarterly publication that provides informative articles on the latest technologies and industry trends; distributes specialty catalogs to education, healthcare, and government customers; and MacConnection that publishes a catalog for the Apple market. The company markets its products and services through its Websites, such as connection.com, connection.com/enterprise, connection.com/publicsector, and macconnection.com. It serves small to medium-sized businesses (SMBs) comprising small office/home offices customers; government and educational institutions; and medium-to-large corporate accounts through outbound telemarketing and field sales and marketing programs targeted to specific customer populations, as well as through digital, Web, and print media advertising. PC Connection, Inc. was founded in 1982 and is headquartered in Merrimack, New Hampshire.

About Evine

EVINE Live Inc. operates as a multiplatform video commerce company in the United States. The company markets, sells, and distributes products to consumers through television, online, mobile, and social media in various merchandise categories, such as jewelry and watches, which include silver, gold, and gemstones to simulated diamonds; home and consumer electronics, which include home d├ęcor, bed and bath textiles, cookware, kitchen electrics, mattresses, tabletop accessories, and home furnishings; beauty products, including skincare, cosmetics, hair care, and bath and body products; and fashion and accessories, such as apparel, outerwear, intimates, handbags, accessories, and footwear. It has access to approximately 87 million cable and satellite television homes, as well as offers its products through online at evine.com. The company was formerly known as ValueVision Media, Inc. and changed its name to EVINE Live Inc. in November 2014. EVINE Live Inc. was founded in 1990 and is headquartered in Eden Prairie, Minnesota.

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