Head-To-Head Analysis: dELiA*s (DLIAQ) vs. Overstock.com (OSTK)

dELiA*s (OTCMKTS:DLIAQ) and Overstock.com (NASDAQ:OSTK) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for dELiA*s and Overstock.com, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
dELiA*s 0 0 0 0 N/A
Overstock.com 0 0 3 0 3.00

Overstock.com has a consensus target price of $93.50, indicating a potential upside of 346.73%. Given Overstock.com’s higher possible upside, analysts clearly believe Overstock.com is more favorable than dELiA*s.

Profitability

This table compares dELiA*s and Overstock.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
dELiA*s N/A N/A N/A
Overstock.com -14.21% -105.90% -48.92%

Risk and Volatility

dELiA*s has a beta of 3.96, suggesting that its share price is 296% more volatile than the S&P 500. Comparatively, Overstock.com has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500.

Insider and Institutional Ownership

55.0% of Overstock.com shares are owned by institutional investors. 28.8% of dELiA*s shares are owned by company insiders. Comparatively, 28.9% of Overstock.com shares are owned by company 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 dELiA*s and Overstock.com’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
dELiA*s N/A N/A N/A N/A N/A
Overstock.com $1.74 billion 0.39 -$109.87 million ($1.81) -11.56

dELiA*s has higher earnings, but lower revenue than Overstock.com.

Summary

Overstock.com beats dELiA*s on 5 of the 9 factors compared between the two stocks.

About dELiA*s

dELiA*s, Inc. operates as a multi-channel retail company, primarily marketing to teenage girls in the United States. The company sells various product categories to consumers through its Website, direct mail catalogs, and retail stores. It develops, markets, and sells a collection of apparel, dresses, swimwear, footwear, outerwear, and accessories primarily for teenage girls under the dELiA*s name. As of May 3, 2014, the company operated 99 stores. It also develops, markets, and sells third-party brands. The company was founded in 1997 and is based in Costa Mesa, California.

About Overstock.com

Overstock.com, Inc. operates as an online retailer in the United States. It operates in two segments, Direct and Partner. The company offers home and garden products, including furniture, home decor, garden and patio, kitchen and dining, bedding, home improvement, housewares, and other related products; jewelry and watches; clothing and accessories; electronics and computers; artisan-crafted products; and other products. It also provides handcrafted products; new, used, and certified pre-owned cars; and loans, credit cards, and insurance, as well as access links to automated financial advisory and discounted stock brokerage services. The company sells its products and services through its Internet Websites located at overstock.com, o.co, o.biz, and Pet Adoptions and Worldstock.com, as well as through third party logistics providers to international customers. The company was formerly known as D2-Discounts Direct and changed its name to Overstock.com, Inc. in October 1999. Overstock.com, Inc. was founded in 1997 and is headquartered in Midvale, Utah.

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