EVINE Live (NASDAQ: EVLV) and The Michaels Companies (NASDAQ:MIK) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitabiliy and risk.
Volatility & Risk
EVINE Live has a beta of 3.29, meaning that its stock price is 229% more volatile than the S&P 500. Comparatively, The Michaels Companies has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.
Institutional & Insider Ownership
43.1% of EVINE Live shares are held by institutional investors. Comparatively, 98.4% of The Michaels Companies shares are held by institutional investors. 4.2% of EVINE Live shares are held by company insiders. Comparatively, 1.5% of The Michaels Companies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for EVINE Live and The Michaels Companies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EVINE Live | 0 | 0 | 2 | 0 | 3.00 |
| The Michaels Companies | 0 | 4 | 7 | 0 | 2.64 |
EVINE Live currently has a consensus price target of $2.50, suggesting a potential upside of 131.48%. The Michaels Companies has a consensus price target of $25.83, suggesting a potential upside of 35.82%. Given EVINE Live’s stronger consensus rating and higher probable upside, research analysts clearly believe EVINE Live is more favorable than The Michaels Companies.
Profitability
This table compares EVINE Live and The Michaels Companies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EVINE Live | -1.07% | -7.89% | -2.22% |
| The Michaels Companies | 7.30% | -22.75% | 18.28% |
Earnings & Valuation
This table compares EVINE Live and The Michaels Companies’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| EVINE Live | $655.64 million | 0.10 | $13.62 million | ($0.11) | -9.82 |
| The Michaels Companies | $5.20 billion | 0.69 | $800.72 million | $1.87 | 10.17 |
The Michaels Companies has higher revenue and earnings than EVINE Live. EVINE Live is trading at a lower price-to-earnings ratio than The Michaels Companies, indicating that it is currently the more affordable of the two stocks.
Summary
The Michaels Companies beats EVINE Live on 8 of the 13 factors compared between the two stocks.
About EVINE Live
EVINE Live Inc. is a digital commerce company. The Company operates through the digital commerce retailing segment. The Company offers a mix of brands directly to consumers in an engaging and informative shopping experience through television (TV), online and mobile devices. It operates an around the clock television shopping network, EVINE Live, which is distributed primarily on cable and satellite systems, through which the Company offers brand products in the categories of jewelry and watches, home and consumer electronics, beauty, and fashion and accessories. In addition, it offers a collection of men’s and women’s watches from classic to modern designs. It features home decor, bed and bath textiles, cookware, kitchen electrics, mattresses, tabletop accessories and home furnishings. Its beauty assortment features a range of skincare, cosmetics, hair care, and bath and body products. It also offers a range of apparel, outerwear, intimates, handbags, accessories and footwear.
About The Michaels Companies
The Michaels Companies, Inc. (Michaels) is an arts and crafts specialty retailer in North America. The Company’s segments include Michaels-U.S., Michaels-Canada, Aaron Brothers, Pat Catan’s and Darice. As of January 28, 2017, the Company operated 1,223 Michaels retail stores in 49 states and Canada, with approximately 18,000 average square feet of selling space per store. It operated 109 Aaron Brothers stores in nine states, with approximately 5,500 average square feet of selling space and 35 Pat Catan’s stores in five states, with approximately 32,000 average square feet of selling space, as of January 28, 2017. The Company also operates an international wholesale business under the Darice brand name. The Company’s stores purchase custom frames, framing supplies and mats from its framing operation and subsidiary, Artistree, Inc. (Artistree), which consists of a manufacturing facility and four regional processing centers.
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