Financial Survey: Ollie’s Bargain Outlet (NASDAQ:OLLI) vs. National Vision (NASDAQ:EYE)

National Vision (NASDAQ:EYE) and Ollie’s Bargain Outlet (NASDAQ:OLLI) are both mid-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
National Vision	-0.12%	3.58%	1.52%
Ollie’s Bargain Outlet	8.81%	12.86%	8.29%

Earnings & Valuation

This table compares National Vision and Ollie’s Bargain Outlet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Vision	$1.82 billion	1.12	-$28.50 million	($0.03)	-857.67
Ollie’s Bargain Outlet	$2.27 billion	2.88	$199.76 million	$3.62	29.51

Ollie’s Bargain Outlet has higher revenue and earnings than National Vision. National Vision 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.

Analyst Ratings

This is a breakdown of recent recommendations for National Vision and Ollie’s Bargain Outlet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Vision	1	4	6	2	2.69
Ollie’s Bargain Outlet	0	4	12	0	2.75

National Vision currently has a consensus target price of $29.00, indicating a potential upside of 12.71%. Ollie’s Bargain Outlet has a consensus target price of $142.14, indicating a potential upside of 33.06%. Given Ollie’s Bargain Outlet’s stronger consensus rating and higher possible upside, analysts clearly believe Ollie’s Bargain Outlet is more favorable than National Vision.

Volatility and Risk

National Vision has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Summary

Ollie’s Bargain Outlet beats National Vision on 11 of the 13 factors compared between the two stocks.

About National Vision

National Vision Holdings, Inc., through its subsidiaries, operates as an optical retailer in the United States. The company operates in two segments, Owned & Host and Legacy. It offers eyeglasses and contact lenses, and optical accessory products; provides eye exams through its America’s Best, Eyeglass World, Vista Optical, Fred Meyer, and Vista Optical military, as well as Vision Center branded stores; and offers health maintenance organization and optometric services. National Vision Holdings, Inc. was founded in 1990 and is headquartered in Duluth, Georgia.

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.