Contrasting RDE (NASDAQ:GIFT) and Lulu’s Fashion Lounge (NASDAQ:LVLU)

RDE (NASDAQ:GIFT) and Lulu’s Fashion Lounge (NASDAQ:LVLU) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Valuation and Earnings

This table compares RDE and Lulu’s Fashion Lounge”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RDE	$85.95 million	0.45	N/A	N/A	N/A
Lulu’s Fashion Lounge	$324.70 million	0.11	-$19.33 million	($0.75)	-1.11

RDE has higher earnings, but lower revenue than Lulu’s Fashion Lounge.

Institutional and Insider Ownership

73.8% of Lulu’s Fashion Lounge shares are held by institutional investors. 20.5% of RDE shares are held by insiders. Comparatively, 7.7% of Lulu’s Fashion Lounge shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for RDE and Lulu’s Fashion Lounge, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RDE	0	0	1	0	3.00
Lulu’s Fashion Lounge	0	2	0	0	2.00

RDE presently has a consensus price target of $4.00, suggesting a potential upside of 168.46%. Lulu’s Fashion Lounge has a consensus price target of $1.50, suggesting a potential upside of 80.72%. Given RDE’s stronger consensus rating and higher probable upside, analysts plainly believe RDE is more favorable than Lulu’s Fashion Lounge.

Risk and Volatility

RDE has a beta of -0.72, suggesting that its stock price is 172% less volatile than the S&P 500. Comparatively, Lulu’s Fashion Lounge has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500.

Profitability

This table compares RDE and Lulu’s Fashion Lounge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RDE	N/A	-62.87%	-38.24%
Lulu’s Fashion Lounge	-9.44%	-58.04%	-20.13%

Summary

RDE beats Lulu’s Fashion Lounge on 6 of the 11 factors compared between the two stocks.

About RDE

RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.

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.