Contrasting Arçelik Anonim Sirketi (OTCMKTS:ACKAY) and Lovesac (NASDAQ:LOVE)

Arçelik Anonim Sirketi (OTCMKTS:ACKAY) and Lovesac (NASDAQ:LOVE) are both consumer cyclical companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Earnings and Valuation

This table compares Arçelik Anonim Sirketi and Lovesac’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arçelik Anonim Sirketi	N/A	N/A	N/A	$4.47	5.24
Lovesac	$700.27 million	0.59	$23.86 million	$1.40	19.10

Lovesac has higher revenue and earnings than Arçelik Anonim Sirketi. Arçelik Anonim Sirketi is trading at a lower price-to-earnings ratio than Lovesac, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.1% of Arçelik Anonim Sirketi shares are owned by institutional investors. Comparatively, 91.3% of Lovesac shares are owned by institutional investors. 12.1% of Lovesac shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Arçelik Anonim Sirketi and Lovesac’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arçelik Anonim Sirketi	N/A	N/A	N/A
Lovesac	3.39%	12.19%	5.36%

Analyst Ratings

This is a summary of current recommendations for Arçelik Anonim Sirketi and Lovesac, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arçelik Anonim Sirketi	0	0	1	0	3.00
Lovesac	0	0	4	0	3.00

Lovesac has a consensus target price of $35.25, indicating a potential upside of 31.82%. Given Lovesac’s higher possible upside, analysts clearly believe Lovesac is more favorable than Arçelik Anonim Sirketi.

Summary

Lovesac beats Arçelik Anonim Sirketi on 9 of the 10 factors compared between the two stocks.

About Arçelik Anonim Sirketi

Arçelik Anonim Sirketi, together with its subsidiaries, produces, markets, sells, after sales services, imports, and exports consumer durable goods and electronics in Turkey, Europe, the Asia Pacific, Africa, and internationally. It operates through White Goods, Consumer Electronics, and Other segments. It offers refrigerators, automatic and semi-automatic top-loading washing machines, chest and upright deep freezers, split air conditioners, microwave ovens, water coolers, dryers, dish washers, ovens, cookers, home appliances, furniture and kitchen gadgets, hoods, built-in cookers, laundry dryers, water dispensers, and coffee machines. The company also provides furnaces, aspirators, mini-midi ovens, warming drawers, water purifiers, combi boilers, kettles, room heaters, and fans; small home appliances comprising brooms, cooking utensils, personal care and hygiene products, and irons; consumer electronics, such as smart phones, laptops and tablets, POS cash registers, Hi-fi systems, portable sound systems, and 3D printers; and hermetic compressors and motor pumps. In addition, it offers televisions, computers, cash registers, and other electronic devices. The company provides its products under the Altus, Arctic, Blomberg, Dawlance, Arçelik, Beko, Defy, Elektrabregenz, Flavel, Grundig, Leisure, STINOL, and VoltasBeko brand names. Arçelik Anonim Sirketi was incorporated in 1955 and is headquartered in Istanbul, Turkey.

About Lovesac

The Lovesac Company designs, manufactures, and sells furniture. It offers sactionals, such as seats and sides; sacs, including foam beanbag chairs; and other products comprising drink holders, footsac blankets, decorative pillows, fitted seat tables, and ottomans. The company markets its products primarily through www.lovesac.com website, as well as showrooms at top tier malls, lifestyle centers, mobile concierges, kiosks, and street locations in 41 states in the United States; and in store pop-up- shops and shop-in-shops, and barter inventory transactions. The Lovesac Company was founded in 1995 and is based in Stamford, Connecticut.