Luxottica Group (OTCMKTS:LUXTY – Get Rating) and Warby Parker (NYSE:WRBY – Get Rating) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.
Analyst Recommendations
This is a summary of current recommendations for Luxottica Group and Warby Parker, as provided by MarketBeat.com.
Get Luxottica Group alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Luxottica Group | 0 | 0 | 0 | 0 | N/A |
| Warby Parker | 0 | 5 | 3 | 0 | 2.38 |
Warby Parker has a consensus price target of $24.64, indicating a potential upside of 79.96%. Given Warby Parker's higher possible upside, analysts clearly believe Warby Parker is more favorable than Luxottica Group.
Profitability
This table compares Luxottica Group and Warby Parker's net margins, return on equity and return on assets.| Net Margins | Return on Equity | Return on Assets | |
| Luxottica Group | N/A | N/A | N/A |
| Warby Parker | -35.47% | -44.81% | -25.70% |
Institutional & Insider Ownership
0.1% of Luxottica Group shares are held by institutional investors. 75.0% of Luxottica Group shares are held by company insiders. Comparatively, 25.4% of Warby Parker shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Luxottica Group and Warby Parker's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Luxottica Group | $10.34 billion | 2.62 | $1.17 billion | $2.29 | 24.37 |
| Warby Parker | $540.80 million | 2.42 | -$144.27 million | ($2.44) | -5.61 |
Luxottica Group has higher revenue and earnings than Warby Parker. Warby Parker is trading at a lower price-to-earnings ratio than Luxottica Group, indicating that it is currently the more affordable of the two stocks.
Summary
Luxottica Group beats Warby Parker on 9 of the 11 factors compared between the two stocks.
About Luxottica Group
(Get Rating)
Luxottica Group S.p.A., together with its subsidiaries, provides fashion, luxury, sports, and performance eyewear worldwide. It operates through two segments, Manufacturing and Wholesale Distribution, and Retail Distribution. The Manufacturing and Wholesale Distribution segment engages in the design, manufacture, distribution, and marketing of proprietary and designer lines of prescription frames and sunglasses. This segment offers its products under proprietary brands, such as Ray-Ban, Oakley, Persol, Oliver Peoples, Alain Mikli, Arnette, and Vogue Eyewear; and licensed brands, including Giorgio Armani, Emporio Armani, Armani Exchange, Brooks Brothers, Burberry, Bulgari, Chanel, Coach, Dolce&Gabbana, DKNY, Michael Kors, Paul Smith Spectacles, Prada, Miu Miu, Ralph Lauren, Polo Ralph Lauren, Ralph, Starck Eyes, Tiffany & Co, Tory Burch, Valentino, Versace, and Ferrari. The Retail Distribution segment operates prescription eyewear stores primarily under its retail brands, including LensCrafters, Sunglass Hut, Pearle Vision, OPSM, Laubman & Pank, GMO, David Clulow, Salmoiraghi & Viganò, Ray-Ban, Oakley and Vault, Oliver Peoples, Alain Mikli, Ilori Optical, and Optical Shop of Aspen; and licensed brands, such as Sears Optical and Target Optical. As of December 31, 2017, it operated approximately 9,000 stores. The company was founded in 1961 and is headquartered in Milan, Italy. As of October 1, 2018, Luxottica Group S.p.A. operates as a subsidiary of EssilorLuxottica.
About Warby Parker
(Get Rating)
Warby Parker Inc. provides eyewear products. It offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, and contact lenses, as well as accessories, including cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray. The company also offers eye exams and vision tests directly to consumers through its retail stores, website, and mobile apps. As of May 16, 2022, it had 160 retail stores in the United States and Canada. The company was formerly known as JAND, Inc. and changed its name to Warby Parker Inc. in June 2021. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.
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