Chico's FAS (NYSE: CHS) and New York & (NYSE:NWY) are both small-cap cyclical consumer goods & services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitabiliy, risk, analyst recommendations, dividends and institutional ownership.

Institutional and Insider Ownership

83.9% of New York & shares are owned by institutional investors. 1.8% of Chico's FAS shares are owned by insiders. Comparatively, 54.3% of New York & shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Chico's FAS and New York &’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chico's FAS 5.76% 21.58% 12.18%
New York & -1.71% -10.20% -2.70%

Valuation & Earnings

This table compares Chico's FAS and New York &’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chico's FAS $2.42 billion 0.46 $281.35 million $0.71 12.41
New York & $922.90 million 0.10 $23.22 million ($0.26) -5.50

Chico's FAS has higher revenue and earnings than New York &. New York & is trading at a lower price-to-earnings ratio than Chico's FAS, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Chico's FAS and New York &, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chico's FAS 0 9 5 0 2.36
New York & 0 0 0 0 N/A

Chico's FAS currently has a consensus price target of $13.58, indicating a potential upside of 54.18%. Given Chico's FAS’s higher possible upside, research analysts plainly believe Chico's FAS is more favorable than New York &.

Volatility and Risk

Chico's FAS has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, New York & has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Dividends

Chico's FAS pays an annual dividend of $0.33 per share and has a dividend yield of 3.7%. New York & does not pay a dividend. Chico's FAS pays out 46.5% of its earnings in the form of a dividend. New York & has increased its dividend for 7 consecutive years.

Summary

Chico's FAS beats New York & on 10 of the 15 factors compared between the two stocks.

Chico's FAS Company Profile

Chico’s FAS, Inc. is an omni-channel specialty retailer of women’s private branded, casual-to-dressy clothing, intimates and accessories, operating under the Chico’s, White House Black Market (WHBM) and Soma brand names. The Company is also engaged in the sale of merchandise in its domestic and international retail stores. The Chico’s brand sells private branded clothing focusing on women 45 and older. Chico’s apparel includes the Black Label, Zenergy and Travelers collections. The WHBM brand sells private branded clothing focusing on women 35 and older. WHBM sells clothing and accessory items, including everyday basics, wear-to-work, denim and occasion. It offers black and white color palette. The accessories at WHBM include shoes, belts, scarves, handbags and jewelry. The Soma brand sells private branded lingerie, sleepwear, loungewear, activewear and beauty products focusing on women 35 and older. The lingerie category includes bras, panties, shapewear and swimwear.

New York & Company Profile

New York & Company, Inc. is a specialty retailer of women’s fashion apparel and accessories. The Company’s branded New York & Company merchandise is sold through its national network of retail stores and online at www.nyandcompany.com. It operates approximately 490 stores, including over 80 outlet stores in over 40 states. It offers brands, including NY&C, City Style, NY Style, Soho Jeans, Lerner and Lerner New York. It offers a merchandise assortment consisting of wear-to-work, casual apparel and accessories, including pants, dresses, jackets, knit tops, blouses, sweaters, denim, t-shirts, activewear, handbags, jewelry and shoes. Its stores are located in shopping malls, lifestyle centers, outlet centers, and off-mall locations, including urban street locations. The outlet stores offer a merchandise mix consisting of apparel and accessories.

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