Coastal Contacts (COA) and Stamps.com (STMP) Critical Analysis

Coastal Contacts (NASDAQ: COA) and Stamps.com (NASDAQ:STMP) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Profitability

This table compares Coastal Contacts and Stamps.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coastal Contacts N/A N/A N/A
Stamps.com 31.54% 35.46% 22.88%

Earnings and Valuation

This table compares Coastal Contacts and Stamps.com’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Coastal Contacts N/A N/A N/A ($0.48) -23.52
Stamps.com $364.30 million 9.13 $75.22 million $7.64 24.90

Stamps.com has higher revenue and earnings than Coastal Contacts. Coastal Contacts is trading at a lower price-to-earnings ratio than Stamps.com, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Coastal Contacts and Stamps.com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coastal Contacts 0 0 0 0 N/A
Stamps.com 0 0 6 0 3.00

Stamps.com has a consensus target price of $217.00, indicating a potential upside of 14.06%. Given Stamps.com’s higher probable upside, analysts plainly believe Stamps.com is more favorable than Coastal Contacts.

Institutional and Insider Ownership

98.6% of Stamps.com shares are held by institutional investors. 11.1% of Stamps.com shares are held by company 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.

Summary

Stamps.com beats Coastal Contacts on 10 of the 10 factors compared between the two stocks.

About Coastal Contacts

Coastal Contacts Inc. is an online retailer of eyewear serving markets in North America, Europe and Asia Pacific. The Company operates in two primary product segments: contact lenses and glasses. The Company has approximately nine stores in Canada and Sweden. It sells contact lenses manufactured by multinational companies, such as Vistakon (a division of Johnson and Johnson Vision Care Inc.), Alcon, Inc., Bausch & Lomb Inc. and Coopervision Inc. Its products are offered for sale by telephone, e9 mail, through its Websites, which include www.ClearlyContacts.ca, www.ClearlyContacts.com.au, www.ClearlyContacts.co.nz, www.LensWay.se, www.LensWay.fi, www.LensWay.nl, www.LensWay.no, www.LensWay.co.uk, and www.ContactSan.com or at one of its nine physical retail locations. In April 2014, the Company announced that Essilor International (Compagnie Generale d’Optique), S.A. (Essilor) has indirectly acquired the interest of Coastal.com.

About Stamps.com

Stamps.com Inc. is a provider of Internet-based mailing and shipping solutions in the United States. The Company offers mailing and shipping products and services to its customers under the Stamps.com, Endicia, ShipStation, ShipWorks and ShippingEasy brands. It operates through the Internet Mailing and Shipping Services segment. Under the Stamps.com and Endicia brands, customers use its United States Postal Service (USPS) only solutions to mail and ship a range of mail pieces and packages through the USPS. USPS mailing and shipping solutions enable users to print electronic postage directly onto envelopes, plain paper, or labels using only a standard personal computer, printer and Internet connection. The Company offers USPS mailing and shipping services, multi-carrier shipping services, mailing and shipping services, branded insurance and international postage solutions. The Company offers customized postage under the PhotoStamps and PictureItPostage brand names.

Receive News & Ratings for Coastal Contacts Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Coastal Contacts and related companies with MarketBeat.com's FREE daily email newsletter.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit