At Home Group (NYSE: HOME) and Williams-Sonoma (NYSE:WSM) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
Volatility & Risk
At Home Group has a beta of 3.84, meaning that its stock price is 284% more volatile than the S&P 500. Comparatively, Williams-Sonoma has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.
24.7% of At Home Group shares are held by institutional investors. Comparatively, 96.6% of Williams-Sonoma shares are held by institutional investors. 7.3% of At Home Group shares are held by insiders. Comparatively, 1.0% of Williams-Sonoma shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares At Home Group and Williams-Sonoma’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|At Home Group||$765.64 million||2.29||$27.06 million||$0.60||48.35|
|Williams-Sonoma||$5.08 billion||0.87||$305.38 million||$3.53||14.82|
Williams-Sonoma has higher revenue and earnings than At Home Group. Williams-Sonoma is trading at a lower price-to-earnings ratio than At Home Group, indicating that it is currently the more affordable of the two stocks.
Williams-Sonoma pays an annual dividend of $1.56 per share and has a dividend yield of 3.0%. At Home Group does not pay a dividend. Williams-Sonoma pays out 44.2% of its earnings in the form of a dividend. At Home Group has increased its dividend for 7 consecutive years.
This table compares At Home Group and Williams-Sonoma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|At Home Group||4.18%||7.53%||3.21%|
This is a breakdown of current recommendations and price targets for At Home Group and Williams-Sonoma, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|At Home Group||0||2||5||0||2.71|
At Home Group presently has a consensus price target of $27.50, indicating a potential downside of 5.21%. Williams-Sonoma has a consensus price target of $50.78, indicating a potential downside of 2.91%. Given Williams-Sonoma’s higher probable upside, analysts plainly believe Williams-Sonoma is more favorable than At Home Group.
Williams-Sonoma beats At Home Group on 9 of the 17 factors compared between the two stocks.
About At Home Group
At Home Group, Inc. is a home decor superstore. The Company is focused on providing a range of assortment of products for any room, in any style, for any budget. As of July 30, 2016, the Company offered over 50,000 stock keeping units (SKUs) throughout its stores. As of July 30, 2016, the Company’s store base is consisted of 115 format stores across 29 states and 65 markets, averaging approximately 120,000 square feet per store.
Williams-Sonoma, Inc. is a multi-channel specialty retailer of products for the home. The Company operates retail stores in the United States, Canada, Puerto Rico, Australia and the United Kingdom. It operates through two segments: e-commerce and retail. The e-commerce segment has various merchandising strategies, such as Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, PBteen, Williams-Sonoma Home, Rejuvenation and Mark and Graham, which sell its products through the Company’s e-commerce Websites and direct-mail catalogs. The retail segment has various merchandising strategies, such as Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm and Rejuvenation, which sell its products through the Company’s retail stores. The Company franchises its brands to third parties in a number of countries in the Middle East, the Philippines and Mexico. The Company’s products are also available to customers through its catalogs and online across the world.
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