Target (TGT) and Ollie's Bargain Outlet (OLLI) Financial Contrast

Target (NYSE: TGT) and Ollie's Bargain Outlet (NASDAQ:OLLI) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Dividends

Target pays an annual dividend of $2.48 per share and has a dividend yield of 3.7%. Ollie's Bargain Outlet does not pay a dividend. Target pays out 52.7% of its earnings in the form of a dividend. Target has raised its dividend for 50 consecutive years.

Risk and Volatility

Target has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Ollie's Bargain Outlet has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500.

Profitability

This table compares Target and Ollie's Bargain Outlet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Target 4.08% 23.04% 6.71%
Ollie's Bargain Outlet 8.17% 10.55% 7.02%

Earnings & Valuation

This table compares Target and Ollie's Bargain Outlet’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Target $71.88 billion 0.51 $2.93 billion $4.71 14.37
Ollie's Bargain Outlet $890.32 million 4.10 $59.76 million $0.97 61.08

Target has higher revenue and earnings than Ollie's Bargain Outlet. Target is trading at a lower price-to-earnings ratio than Ollie's Bargain Outlet, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Target and Ollie's Bargain Outlet, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Target 1 10 7 0 2.33
Ollie's Bargain Outlet 1 5 7 0 2.46

Target presently has a consensus target price of $74.12, suggesting a potential upside of 9.48%. Ollie's Bargain Outlet has a consensus target price of $53.83, suggesting a potential downside of 9.14%. Given Target’s higher probable upside, research analysts clearly believe Target is more favorable than Ollie's Bargain Outlet.

Institutional and Insider Ownership

87.0% of Target shares are held by institutional investors. Comparatively, 91.8% of Ollie's Bargain Outlet shares are held by institutional investors. 0.2% of Target shares are held by insiders. Comparatively, 22.3% of Ollie's Bargain Outlet shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

About Target

Target Corporation operates as a general merchandise retailer in the United States. The company offers beauty and household essentials, including beauty products, personal and baby care products, cleaning products, paper products, and pet supplies; food and beverage products, such as dry grocery, dairy, frozen food, beverage, candy, snacks, deli, bakery, meat, and produce products; and apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as intimate apparel, jewelry, accessories, and shoes. It also provides home furnishings and décor comprising furniture, lighting, kitchenware, small appliances, home décor, bed and bath products, home improvement products, and automotive products, as well as seasonal merchandise comprising patio furniture and holiday décor; and music, movies, books, computer software, sporting goods, and toys, as well as electronics that include video game hardware and software. In addition, the company offers in-store amenities, which comprise Target Café, Target Optical, Starbucks, and other food service offerings. It sells its products through its stores; and digital channels, including Target.com. As of March 8, 2018, the company operated 1,826 stores. Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota.

About Ollie's Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a retailer of brand name merchandise. The Company offers customers a selection of brand name products, including food, housewares, books and stationery, bed and bath, floor coverings, electronics and toys. Its warehouse format stores feature a range of products, including hardware, personal healthcare, candy, clothing, sporting goods, pet and lawn and garden products. It offers cooking utensils, dishes, appliances, plastic containers, coffee, bottled non-carbonated beverages, coffee, bottled non-carbonated beverages, bedding, towels, curtains, laminate flooring, commercial and residential carpeting, air conditioners, home electronics, cellular accessories, dolls, action figures, puzzles, action figures, puzzles, educational toys, board games, luggage, automotive, seasonal, furniture, summer furniture and lawn and garden. As of January 28, 2017, it had operated 234 stores across 19 contiguous states in the Eastern half of the United States.

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