hhgregg (HGGGQ) and Conn’s (CONN) Head-To-Head Survey

hhgregg (OTCMKTS:HGGGQ) and Conn’s (NASDAQ:CONN) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Institutional and Insider Ownership

68.5% of Conn’s shares are owned by institutional investors. 53.1% of hhgregg shares are owned by insiders. Comparatively, 3.3% of Conn’s shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares hhgregg and Conn’s’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
hhgregg N/A N/A N/A
Conn’s 2.25% 10.05% 2.98%

Valuation & Earnings

This table compares hhgregg and Conn’s’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
hhgregg $1.96 billion 0.00 -$54.87 million N/A N/A
Conn’s $1.52 billion 0.52 $6.46 million $0.95 26.29

Conn’s has lower revenue, but higher earnings than hhgregg.

Risk & Volatility

hhgregg has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Conn’s has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for hhgregg and Conn’s, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
hhgregg 0 0 0 0 N/A
Conn’s 0 1 5 0 2.83

Conn’s has a consensus price target of $42.75, indicating a potential upside of 71.14%. Given Conn’s’ higher probable upside, analysts clearly believe Conn’s is more favorable than hhgregg.

Summary

Conn’s beats hhgregg on 9 of the 11 factors compared between the two stocks.

hhgregg Company Profile

hhgregg, Inc. operates as an appliance, consumer electronics, and furniture retailer. The company's appliances products include refrigerators, cooking ranges, dishwashers, freezers, washers and dryers, grills, air conditioners, and small home appliances; consumer electronics products comprise LED televisions, audio systems, cameras, and Blu-ray players; furniture, mattresses, and other home products; and computers, computer accessories, and tablets. As of March 2, 2017, it operated 220 stores in 19 states of the United States. The company was founded in 1955 and is headquartered in Indianapolis, Indiana. On March 6, 2017, hhgregg, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Southern District of Indiana.

Conn’s Company Profile

Conn's, Inc. operates as a specialty retailer of durable consumer goods and related services in the United States. The company operates through two segments, Retail and Credit. Its stores provide furniture and mattress, including furniture and related accessories for the living room, dining room, and bedroom, as well as traditional and specialty mattresses; home appliances, such as refrigerators, freezers, washers, dryers, dishwashers, and ranges; consumer electronics comprising televisions, Blu-ray players, home theaters, and portable audio equipment; and home office products consisting of computers, printers, and accessories. The company also provides short- and medium-term financing to its retail customers; and product support services, such as next-day delivery and installation services, credit insurance products, product repair services, and repair service agreements. As of September 4, 2018, it operated 119 HomePlus retail locations in Alabama, Arizona, Colorado, Georgia, Louisiana, Mississippi, Nevada, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, and Virginia. Conn's, Inc. was founded in 1890 and is headquartered in The Woodlands, Texas.

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