Analyzing Aritzia (OTCMKTS:ATZAF) and Lands’ End (NASDAQ:LE)

Lands’ End (NASDAQ:LE) and Aritzia (OTCMKTS:ATZAF) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Earnings and Valuation

This table compares Lands’ End and Aritzia’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lands’ End	$1.47 billion	0.27	-$130.68 million	($4.09)	-3.10
Aritzia	N/A	N/A	N/A	N/A	N/A

Aritzia has lower revenue, but higher earnings than Lands’ End.

Analyst Recommendations

This is a summary of recent ratings and target prices for Lands’ End and Aritzia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lands’ End	0	0	1	0	3.00
Aritzia	0	2	2	0	2.50

Lands’ End presently has a consensus target price of $15.00, suggesting a potential upside of 18.34%. Aritzia has a consensus target price of $45.75, suggesting a potential upside of 85.45%. Given Aritzia’s higher possible upside, analysts clearly believe Aritzia is more favorable than Lands’ End.

Institutional & Insider Ownership

37.5% of Lands’ End shares are held by institutional investors. 3.3% of Lands’ End shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Lands’ End and Aritzia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lands’ End	-8.87%	-1.70%	-0.56%
Aritzia	N/A	N/A	N/A

Summary

Aritzia beats Lands’ End on 5 of the 9 factors compared between the two stocks.

About Lands’ End

Lands' End, Inc. operates as a digital retailer of casual clothing, swimwear, outerwear, accessories, footwear, and home products in the United States, Europe, Asia, and internationally. It operates through U.S. eCommerce, International, Outfitters, Third Party, and Retail segments. The company also sells uniform and logo apparel. It sells its products through e-commerce and company operated stores, as well as through third party distribution channels under the Lands' End, Lands' End Lighthouse, Squall, Tugless Tank, Drifter, Outrigger, and Marinac, Beach Living brands, as well as Supima, No-Gape, Starfish, Little Black Suit, Iron Knees, Hyde Park, Year' Rounder, ClassMate, Willis & Geiger, and ThermaCheck brands. Lands' End, Inc. was founded in 1963 and is headquartered in Dodgeville, Wisconsin.

About Aritzia

Aritzia Inc., together with its subsidiaries, designs and sells apparel and accessories for women in the United States and Canada. The company offers t-shirts and tops, sweaters, shirts and blouses, bodysuits, sweatshirts, blazers, jacket and coats, and dresses; pants, denim, leggings and bike shorts, sweatpants, skirts, shorts, sweatshorts, and jumpsuits and rompers; accessories, such as socks, hats, bags, scarves, belts, and intimates; swimwear; and shoes. It offers its products under the Wilfred, Wilfred Free, Babaton, The Group by Babaton, Babaton 101, Ten by Babaton, Tna, Little Moon, Sunday Best, Super World, TnAction, Denim Forum, Auxiliary, Talula, Tna x EMU, New Era, and Merrell brands. The company was formerly known as Aritzia Capital Corporation and changed its name to Aritzia Inc. in August 2016. Aritzia Inc. was founded in 1984 and is headquartered in Vancouver, Canada.