CarParts.com (NASDAQ:PRTS – Get Free Report) and Lulu’s Fashion Lounge (NASDAQ:LVLU – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.
Insider & Institutional Ownership
75.3% of CarParts.com shares are held by institutional investors. Comparatively, 73.8% of Lulu’s Fashion Lounge shares are held by institutional investors. 6.6% of CarParts.com shares are held by insiders. Comparatively, 7.8% of Lulu’s Fashion Lounge shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
CarParts.com has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Lulu’s Fashion Lounge has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CarParts.com | 1 | 1 | 0 | 0 | 1.50 |
| Lulu’s Fashion Lounge | 1 | 0 | 0 | 0 | 1.00 |
CarParts.com currently has a consensus target price of $6.00, suggesting a potential downside of 7.05%. Given CarParts.com’s stronger consensus rating and higher possible upside, research analysts plainly believe CarParts.com is more favorable than Lulu’s Fashion Lounge.
Valuation & Earnings
This table compares CarParts.com and Lulu’s Fashion Lounge”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CarParts.com | $547.53 million | 0.10 | -$50.44 million | ($4.33) | -1.49 |
| Lulu’s Fashion Lounge | $261.95 million | 0.16 | -$13.71 million | ($2.94) | -4.95 |
Lulu’s Fashion Lounge has lower revenue, but higher earnings than CarParts.com. Lulu’s Fashion Lounge is trading at a lower price-to-earnings ratio than CarParts.com, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares CarParts.com and Lulu’s Fashion Lounge’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CarParts.com | -5.35% | -47.19% | -14.52% |
| Lulu’s Fashion Lounge | -3.17% | -946.15% | -8.73% |
Summary
CarParts.com beats Lulu’s Fashion Lounge on 7 of the 13 factors compared between the two stocks.
About CarParts.com
CarParts.com, Inc., together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines. It offers replacement parts, such as parts for the exterior of an automobile; mirror products; engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories. The company sells its products to individual customers through its flagship website www.carparts.com and app; online marketplaces, including third-party auction sites and shopping portals; and auto parts wholesale distributors. The company was formerly known as U.S. Auto Parts Network, Inc. and changed its name to CarParts.com, Inc. in July 2020. CarParts.com, Inc. was incorporated in 1995 and is headquartered in Torrance, California.
About Lulu’s Fashion Lounge
Lulu’s Fashion Lounge Holdings, Inc. engages in providing an online website for clothing. It offers retailing of women’s clothing, shoes, and accessories. The company was founded in 1996 and is headquartered in Chico, CA.
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