Head to Head Comparison: RDE (NASDAQ:GIFT) vs. Lulu’s Fashion Lounge (NASDAQ:LVLU)

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

Institutional & Insider Ownership

73.8% of Lulu’s Fashion Lounge shares are held by institutional investors. 7.7% of Lulu’s Fashion Lounge shares are held by company insiders. Comparatively, 20.5% of RDE 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.

Earnings and Valuation

This table compares Lulu’s Fashion Lounge and RDE”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lulu’s Fashion Lounge	$355.17 million	0.10	-$19.33 million	($0.75)	-1.13
RDE	$97.01 million	0.30	N/A	N/A	N/A

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

Risk and Volatility

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

Profitability

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

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

Analyst Ratings

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

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

Lulu’s Fashion Lounge currently has a consensus target price of $1.50, indicating a potential upside of 76.49%. RDE has a consensus target price of $4.00, indicating a potential upside of 253.98%. Given RDE’s stronger consensus rating and higher probable upside, analysts clearly believe RDE is more favorable than Lulu’s Fashion Lounge.

Summary

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

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.

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.