West Marine (NASDAQ: WMAR) and EVINE Live (NASDAQ:EVLV) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Institutional & Insider Ownership

57.9% of West Marine shares are held by institutional investors. Comparatively, 36.5% of EVINE Live shares are held by institutional investors. 27.5% of West Marine shares are held by insiders. Comparatively, 4.2% of EVINE Live shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares West Marine and EVINE Live’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
West Marine 1.15% 2.56% 1.83%
EVINE Live -1.08% -8.37% -2.38%

Analyst Ratings

This is a summary of recent ratings and price targets for West Marine and EVINE Live, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
West Marine 0 3 0 0 2.00
EVINE Live 0 0 2 0 3.00

West Marine presently has a consensus target price of $9.99, suggesting a potential downside of 22.86%. EVINE Live has a consensus target price of $2.50, suggesting a potential upside of 165.99%. Given EVINE Live’s stronger consensus rating and higher possible upside, analysts clearly believe EVINE Live is more favorable than West Marine.

Earnings and Valuation

This table compares West Marine and EVINE Live’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
West Marine $697.67 million 0.47 $39.13 million $0.31 41.78
EVINE Live $647.45 million 0.09 $12.89 million ($0.11) -8.54

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

Dividends

West Marine pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. EVINE Live does not pay a dividend. West Marine pays out 64.5% of its earnings in the form of a dividend.

Risk and Volatility

West Marine has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, EVINE Live has a beta of 3.32, meaning that its stock price is 232% more volatile than the S&P 500.

Summary

West Marine beats EVINE Live on 10 of the 15 factors compared between the two stocks.

About West Marine

West Marine, Inc. is a waterlife outfitter for cruisers, sailors, anglers and paddlesports enthusiasts. The Company offers a selection of core boating and water recreation products, primarily serving the needs of boat owners and professionals providing services to them. It services its customers through physical stores and two e-commerce Websites. It is a specialty retailer of boating supplies, gear, apparel, footwear and other waterlife-related products. It operates approximately 260 stores located in approximately 40 states, Puerto Rico and Canada. Its products include boating products and merchandise expansion products. Its boating products include maintenance, electronics, sailboat hardware, anchors/docking/moorings, engine systems, boats/outboards, ventilation, navigation, trailering, seating/boat covers and barbecues/appliances. Its merchandise expansion products include clothing accessories, fishing, watersports, paddlesports, coolers and waterlife lifestyle accessories.

About EVINE Live

EVINE Live Inc. is a digital commerce company. The Company operates through the digital commerce retailing segment. The Company offers a mix of brands directly to consumers in an engaging and informative shopping experience through television (TV), online and mobile devices. It operates an around the clock television shopping network, EVINE Live, which is distributed primarily on cable and satellite systems, through which the Company offers brand products in the categories of jewelry and watches, home and consumer electronics, beauty, and fashion and accessories. In addition, it offers a collection of men’s and women’s watches from classic to modern designs. It features home decor, bed and bath textiles, cookware, kitchen electrics, mattresses, tabletop accessories and home furnishings. Its beauty assortment features a range of skincare, cosmetics, hair care, and bath and body products. It also offers a range of apparel, outerwear, intimates, handbags, accessories and footwear.

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