Cabela’s (NYSE: CAB) and Stamps.com (NASDAQ:STMP) are both mid-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitabiliy and risk.

Insider and Institutional Ownership

57.8% of Cabela’s shares are owned by institutional investors. 21.0% of Cabela’s shares are owned by insiders. Comparatively, 11.1% of Stamps.com shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Cabela’s has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, Stamps.com has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500.

Valuation and Earnings

This table compares Cabela’s and Stamps.com’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cabela’s $4.10 billion 0.91 $468.84 million $1.94 27.92
Stamps.com $419.64 million 8.58 $171.30 million $6.17 34.47

Cabela’s has higher revenue and earnings than Stamps.com. Cabela’s is trading at a lower price-to-earnings ratio than Stamps.com, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Cabela’s and Stamps.com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cabela’s 0 7 1 0 2.13
Stamps.com 0 0 5 0 3.00

Cabela’s currently has a consensus price target of $64.60, indicating a potential upside of 19.25%. Stamps.com has a consensus price target of $198.00, indicating a potential downside of 6.91%. Given Cabela’s’ higher possible upside, analysts plainly believe Cabela’s is more favorable than Stamps.com.

Profitability

This table compares Cabela’s and Stamps.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cabela’s 3.29% 8.60% 1.98%
Stamps.com 26.66% 34.46% 21.63%

Summary

Stamps.com beats Cabela’s on 8 of the 14 factors compared between the two stocks.

Cabela’s Company Profile

Cabela’s Incorporated is an omni-channel retailer of hunting, fishing, camping, shooting sports and related outdoor merchandise. The Company offers its customers a selection of national and regional brand products, including its Cabela’s brand. The Company’s segments include Merchandising and Financial Services. The Merchandising segment sells products and services through the Company’s retail stores, its e-commerce Websites (Cabelas.com and Cabelas.ca), and its catalogs. The United States merchandising and Canada merchandising operating segments have been aggregated into its Merchandising segment. The Financial Services segment issues co-branded credit cards, which are available through all of its channels. The Company’s product assortment includes merchandise and equipment for hunting, fishing, marine use, camping, and recreational sport shooting, along with casual and outdoor apparel and footwear, optics, vehicle accessories, and gifts and home furnishings with an outdoor theme.

Stamps.com Company Profile

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.

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