bebe stores (BEBE) versus The Talbots (NYSE:TLB) Critical Survey

The Talbots (NYSE: TLB) and bebe stores (NASDAQ:BEBE) are both cyclical consumer goods & services companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Profitability

This table compares The Talbots and bebe stores’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Talbots N/A N/A N/A
bebe stores -11.36% -79.31% -34.95%

Insider and Institutional Ownership

11.9% of bebe stores shares are held by institutional investors. 59.0% of bebe stores shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares The Talbots and bebe stores’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Talbots N/A N/A N/A ($1.61) N/A
bebe stores $393.59 million 0.14 -$138.96 million ($3.92) -1.76

The Talbots has higher earnings, but lower revenue than bebe stores. bebe stores is trading at a lower price-to-earnings ratio than The Talbots, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for The Talbots and bebe stores, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Talbots 0 0 0 0 N/A
bebe stores 0 0 0 0 N/A

Summary

The Talbots beats bebe stores on 5 of the 8 factors compared between the two stocks.

The Talbots Company Profile

The Talbots Inc. is a United States-based company, which operates as a retailer and direct marketer of women’s clothing, shoes and accessories. The Company offers blazer, trench, white shirt, ballet flat and pearls. It sells its products through different outlets. It also provides e-commerce service and its website offers MyTalbots, which allows customers to register for benefits and customize their online shopping experience; Style by Design appointment shopping; Pearls of Wisdom, offering fashion advice and styling ideas; and a Find in Store feature, which enables customers to locate and reserve merchandise in any Talbots store.

bebe stores Company Profile

bebe stores, inc. designs, develops and produces a range of contemporary women’s apparel and accessories. The Company’s product offering includes a range of separates, tops, dresses, active wear and accessories for a range of occasions. It designs and develops its merchandise in-house, which is manufactured to its specifications and it also sources directly from third-party manufacturers. The Company also offers accessories, which include jewelry, optical, fragrance, shoes and handbags. The Company operates stores in the United States, Puerto Rico and Canada. In addition, it has an online store at www.bebe.com that ships to customers in the United States, Canada, Puerto Rico, the United States Protectorates and internationally via its third-party providers, International Checkout and Shoprunner. It has international stores operated by licensees in South East Asia, the United Arab Emirates, Russia, South America, Turkey and other territories.

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