Contrasting Ollie’s Bargain Outlet (NASDAQ:OLLI) and Seven and I (OTCMKTS:SVNDY)

Seven and I (OTCMKTS:SVNDY) and Ollie’s Bargain Outlet (NASDAQ:OLLI) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Seven and I and Ollie’s Bargain Outlet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seven and I	0	2	0	0	2.00
Ollie’s Bargain Outlet	0	4	13	0	2.76

Ollie’s Bargain Outlet has a consensus target price of $103.50, indicating a potential upside of 11.08%. Given Ollie’s Bargain Outlet’s stronger consensus rating and higher probable upside, analysts clearly believe Ollie’s Bargain Outlet is more favorable than Seven and I.

Risk & Volatility

Seven and I has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Valuation & Earnings

This table compares Seven and I and Ollie’s Bargain Outlet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seven and I	$69.63 billion	0.43	$1.96 billion	$0.80	16.15
Ollie’s Bargain Outlet	$2.65 billion	2.09	$240.60 million	$4.48	20.80

Seven and I has higher revenue and earnings than Ollie’s Bargain Outlet. Seven and I is trading at a lower price-to-earnings ratio than Ollie’s Bargain Outlet, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Seven and I and Ollie’s Bargain Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seven and I	2.89%	8.15%	3.21%
Ollie’s Bargain Outlet	9.79%	14.54%	9.23%

Institutional & Insider Ownership

0.0% of Seven and I shares are held by institutional investors. 0.7% of Ollie’s Bargain Outlet shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Ollie’s Bargain Outlet beats Seven and I on 11 of the 14 factors compared between the two stocks.

About Seven and I

Seven & i Holdings Co., Ltd. operates convenience stores, superstores, department stores, supermarkets, and specialty stores. It operates through six segments: Domestic Convenience Store operations, Overseas Convenience Store Operations, Superstore Operations, Department and Specialty Store Operations, Financial Services, and Others. The company engages in the operation of convenience stores comprising directly managed corporate stores and franchised stores; retail business that provides daily life necessities, such as food and other daily necessities and dollar merchandise and services; banking, leasing, and credit card business; and real estate business. Seven & i Holdings Co., Ltd. was incorporated in 2005 and is headquartered in Tokyo, Japan.

About Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.