Head-To-Head Survey: Burlington (BURL) & Sears (SHLD)

Burlington (NYSE: BURL) and Sears (NASDAQ:SHLD) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Profitability

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This table compares Burlington and Sears’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Burlington 6.31% -754.89% 11.19%
Sears -2.29% N/A -10.40%

Volatility and Risk

Burlington has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Sears has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Institutional & Insider Ownership

58.0% of Sears shares are held by institutional investors. 1.9% of Burlington shares are held by company insiders. Comparatively, 56.8% of Sears shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Burlington and Sears’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Burlington $6.11 billion 1.52 $384.85 million $4.37 31.05
Sears $16.70 billion 0.02 -$383.00 million N/A N/A

Burlington has higher earnings, but lower revenue than Sears.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Burlington and Sears, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Burlington 0 0 15 0 3.00
Sears 2 0 0 0 1.00

Burlington currently has a consensus price target of $133.33, suggesting a potential downside of 1.75%. Sears has a consensus price target of $2.40, suggesting a potential downside of 21.31%. Given Burlington’s stronger consensus rating and higher probable upside, equities analysts plainly believe Burlington is more favorable than Sears.

Summary

Burlington beats Sears on 7 of the 12 factors compared between the two stocks.

About Burlington

Burlington Stores, Inc. operates as a retailer of branded apparel products in the United States. The company offers fashion-focused merchandise, including ladies sportswear, menswear, youth apparel, baby furniture, footwear, accessories, home décor and gifts, and coats. It operates 629 stores, including an Internet store in 45 states and Puerto Rico. Burlington Stores, Inc. was founded in 1972 and is headquartered in Burlington, New Jersey.

About Sears

Sears Holdings Corporation operates as an integrated retailer in the United States. It operates in two segments, Kmart and Sears Domestic. The Kmart segment operates retail stores that offer a range of products, including consumer electronics, seasonal merchandise, outdoor living, toys, lawn and garden equipment, food and consumables, and apparel; and in-store pharmacies. It provides merchandise under the Jaclyn Smith, Joe Boxer, Route 66, Cannon, Adam Levine, Levi's, Lands' End, and Craftsman labels; Sears brand products, such as Kenmore and DieHard; and Kenmore-branded products. As of February 3, 2018, this segment operated approximately 432 Kmart stores. The Sears Domestic segment operates stores that provide appliances, consumer electronics/connected solutions, tools, sporting goods, outdoor living, lawn and garden equipment, apparel, footwear, jewelry, and accessories, as well as automotive services and products, such as tires, batteries, and home fashion products. It also offers parts and services to builders, developers, designers, and commercial and residential customers; parts and repair services for appliances, lawn and garden equipment, consumer electronics, floor care products, and heating and cooling systems; home improvement services, such as siding, windows, cabinet refacing, kitchen remodeling, roofing, carpet and upholstery cleaning, air duct cleaning, and garage door installation and repair; and protection agreements and product installation services. This segment provides merchandise under the Kenmore, DieHard, WallyHome, Bongo, Covington, Simply Styled, Everlast, Metaphor, Roebuck & Co., Outdoor Life, and Structure brands, as well as under the Craftsman, Roadhandler, and Levi's, brands. This segment operated 547 full-line stores and 23 specialty stores. Sears Holdings Corporation was founded in 1899 and is based in Hoffman Estates, Illinois.

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