Contrasting Stamps.com (STMP) and The Michaels Companies (MIK)
Stamps.com (NASDAQ: STMP) and The Michaels Companies (NASDAQ:MIK) are both mid-cap other specialty retailers – nec companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.
Volatility & Risk
Stamps.com has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500. Comparatively, The Michaels Companies has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.
This table compares Stamps.com and The Michaels Companies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Michaels Companies||7.29%||-22.53%||18.13%|
This is a breakdown of recent ratings and recommmendations for Stamps.com and The Michaels Companies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Michaels Companies||1||2||5||0||2.50|
Stamps.com currently has a consensus target price of $217.00, indicating a potential upside of 24.00%. The Michaels Companies has a consensus target price of $24.29, indicating a potential upside of 30.78%. Given The Michaels Companies’ higher probable upside, analysts plainly believe The Michaels Companies is more favorable than Stamps.com.
Earnings & Valuation
This table compares Stamps.com and The Michaels Companies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Stamps.com||$364.30 million||8.40||$75.22 million||$7.64||22.91|
|The Michaels Companies||$5.20 billion||0.65||$378.15 million||$1.89||9.83|
The Michaels Companies has higher revenue and earnings than Stamps.com. The Michaels Companies is trading at a lower price-to-earnings ratio than Stamps.com, indicating that it is currently the more affordable of the two stocks.
Stamps.com beats The Michaels Companies on 8 of the 12 factors compared between the two stocks.
Stamps.com Inc. is a provider of Internet-based mailing and shipping solutions in the United States. The Company offers mailing and shipping products and services to its customers under the Stamps.com, Endicia, ShipStation, ShipWorks and ShippingEasy brands. It operates through the Internet Mailing and Shipping Services segment. Under the Stamps.com and Endicia brands, customers use its United States Postal Service (USPS) only solutions to mail and ship a range of mail pieces and packages through the USPS. USPS mailing and shipping solutions enable users to print electronic postage directly onto envelopes, plain paper, or labels using only a standard personal computer, printer and Internet connection. The Company offers USPS mailing and shipping services, multi-carrier shipping services, mailing and shipping services, branded insurance and international postage solutions. The Company offers customized postage under the PhotoStamps and PictureItPostage brand names.
About The Michaels Companies
The Michaels Companies, Inc. (Michaels) is an arts and crafts specialty retailer in North America. The Company’s segments include Michaels-U.S., Michaels-Canada, Aaron Brothers, Pat Catan’s and Darice. As of January 28, 2017, the Company operated 1,223 Michaels retail stores in 49 states and Canada, with approximately 18,000 average square feet of selling space per store. It operated 109 Aaron Brothers stores in nine states, with approximately 5,500 average square feet of selling space and 35 Pat Catan’s stores in five states, with approximately 32,000 average square feet of selling space, as of January 28, 2017. The Company also operates an international wholesale business under the Darice brand name. The Company’s stores purchase custom frames, framing supplies and mats from its framing operation and subsidiary, Artistree, Inc. (Artistree), which consists of a manufacturing facility and four regional processing centers.
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