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LE vs LOCO

LE
Lands' End, Inc.
BEARISH
Price
$10.87
Market Cap
$334.7M
Sector
Consumer Cyclical
AI Confidence
85%
LOCO
El Pollo Loco Holdings, Inc.
NEUTRAL
Price
$13.86
Market Cap
$415.2M
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
LE
60.39
LOCO
15.4
Forward P/E
LE
9.33
LOCO
12.55
P/B Ratio
LE
1.36
LOCO
1.43
P/S Ratio
LE
0.25
LOCO
0.85
EV/EBITDA
LE
6.34
LOCO
10.54

Profitability

Gross Margin
LE
48.7%
LOCO
22.15%
Operating Margin
LE
7.13%
LOCO
8.71%
Profit Margin
LE
0.41%
LOCO
5.41%
ROE
LE
2.28%
LOCO
9.6%
ROA
LE
4.83%
LOCO
4.76%

Growth

Revenue Growth
LE
4.7%
LOCO
8.1%
Earnings Growth
LE
-32.7%
LOCO
8.1%

Financial Health

Debt/Equity
LE
1.01
LOCO
0.83
Current Ratio
LE
1.61
LOCO
0.32
Quick Ratio
LE
0.26
LOCO
0.22

Dividends

Dividend Yield
LE
--
LOCO
--
Payout Ratio
LE
0.0%
LOCO
0.0%

AI Verdict

LE BEARISH

Lands' End exhibits significant valuation disconnects, with a Piotroski F-Score of 4/9 indicating only stable-to-weak financial health and a Graham Number of $5.69 that is nearly 50% below the current market price. The stock is trading at a massive premium to its growth-based intrinsic value of $1.26, while current P/E (60.39) is excessively high relative to its razor-thin profit margin of 0.41%. Bearish insider sentiment, characterized by $15.51M in sales and zero buys, aligns with a sharp technical downtrend and poor recent earnings surprises.

Strengths
Strong Gross Margin (48.70%)
Low Price-to-Sales ratio (0.25)
Positive Revenue Growth (4.70% YoY)
Risks
Extreme valuation gap vs Graham Number and Intrinsic Value
Very low Quick Ratio (0.26) indicating high inventory dependency
Negative Earnings Growth (-32.70% YoY)
LOCO NEUTRAL

LOCO presents a classic value opportunity with a Piotroski F-Score of 4/9 (Stable) and a current price ($13.86) trading slightly below its Graham Number ($14.03) and well below its intrinsic value ($17.23). While the company demonstrates an exceptional track record of earnings beats and attractive valuation multiples relative to the Consumer Cyclical sector, severe liquidity constraints are evident. The current ratio of 0.32 and quick ratio of 0.22 indicate significant short-term solvency risks that offset the positive valuation and growth metrics.

Strengths
Strong valuation with P/E (15.40) significantly lower than sector average (36.65)
Consistent earnings outperformance with 3/4 recent beats and high average surprise (22.61%)
Trading below both Graham Number ($14.03) and Intrinsic Value ($17.23)
Risks
Critical liquidity risk indicated by a very low Current Ratio (0.32) and Quick Ratio (0.22)
Bearish technical trend (10/100) suggesting a potential short-term price reversal
Mediocre Piotroski F-Score (4/9) indicating stagnant financial health improvement

Compare Another Pair

LE vs LOCO: Head-to-Head Comparison

This page compares Lands' End, Inc. (LE) and El Pollo Loco Holdings, Inc. (LOCO) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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