Analyzing Restoration Hardware (RH) and Lovesac (LOVE)

Restoration Hardware (NYSE:RH) and Lovesac (NASDAQ:LOVE) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Earnings & Valuation

This table compares Restoration Hardware and Lovesac’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Restoration Hardware $2.44 billion 0.99 $2.17 million $3.05 36.45
Lovesac N/A N/A N/A N/A N/A



Restoration Hardware has higher revenue and earnings than Lovesac.

Analyst Ratings

This is a summary of current ratings and recommmendations for Restoration Hardware and Lovesac, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Restoration Hardware 1 8 9 0 2.44
Lovesac 0 0 1 0 3.00

Restoration Hardware presently has a consensus price target of $135.21, suggesting a potential upside of 21.64%. Lovesac has a consensus price target of $26.00, suggesting a potential upside of 36.84%. Given Lovesac’s stronger consensus rating and higher probable upside, analysts clearly believe Lovesac is more favorable than Restoration Hardware.

Profitability

This table compares Restoration Hardware and Lovesac’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Restoration Hardware 4.29% 520.85% 8.96%
Lovesac N/A N/A N/A

Institutional & Insider Ownership

26.5% of Lovesac shares are owned by institutional investors. 29.7% of Restoration Hardware shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Restoration Hardware beats Lovesac on 6 of the 9 factors compared between the two stocks.

About Restoration Hardware

RH, together with its subsidiaries, operates as a retailer in the home furnishings. It offers products in various categories, including furniture, lighting, textiles, bath ware, décor, outdoor and garden, tableware, and child and teen furnishings. The company provides its products through its retail galleries; and Source Books, a series of catalogs, as well as online through rh.com, restorationhardware.com, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com. As of February 3, 2018, it operated a total of 83 retail galleries consisting of 16 design galleries, 47 legacy Galleries, 1 RH modern gallery, and 4 RH baby and child galleries throughout the United States and Canada; and 15 Waterworks showrooms in the United States and in the United kingdom, as well as operated 32 outlet stores throughout the United States and Canada. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was founded in 1979 and is headquartered in Corte Madera, California. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was founded in 1979 and is headquartered in Corte Madera, California.

About Lovesac

The Lovesac Company designs, manufactures, and sells foam filled furniture, sectional couches, and related accessories. It offers sactionals, such as seats and sides; sacs, including foam beanbag chairs; and accessories comprising drink holders, footsac blankets, decorative pillows, fitted seat tables, and ottomans. The company markets its products through its 66 showrooms at top tier malls and lifestyle centers in 29 states of the United States, as well as through online. The Lovesac Company was founded in 1998 and is headquartered in Stamford, Connecticut.

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