Head to Head Survey: Boot Barn (NYSE:BOOT) & Tandy Leather Factory (NASDAQ:TLF)

Tandy Leather Factory (NASDAQ:TLF) and Boot Barn (NYSE:BOOT) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Risk & Volatility

Tandy Leather Factory has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Boot Barn has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Tandy Leather Factory and Boot Barn, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tandy Leather Factory	1	0	0	0	1.00
Boot Barn	0	1	11	1	3.00

Boot Barn has a consensus target price of $219.55, suggesting a potential upside of 35.39%. Given Boot Barn’s stronger consensus rating and higher probable upside, analysts plainly believe Boot Barn is more favorable than Tandy Leather Factory.

Earnings & Valuation

This table compares Tandy Leather Factory and Boot Barn”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tandy Leather Factory	$76.32 million	0.27	$9.10 million	($0.17)	-14.76
Boot Barn	$2.25 billion	2.18	$225.88 million	$7.90	20.53

Boot Barn has higher revenue and earnings than Tandy Leather Factory. Tandy Leather Factory is trading at a lower price-to-earnings ratio than Boot Barn, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tandy Leather Factory and Boot Barn’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tandy Leather Factory	-2.14%	-3.25%	-1.96%
Boot Barn	10.35%	18.78%	10.03%

Institutional & Insider Ownership

56.4% of Tandy Leather Factory shares are held by institutional investors. 36.2% of Tandy Leather Factory shares are held by insiders. Comparatively, 0.7% of Boot Barn shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Boot Barn beats Tandy Leather Factory on 13 of the 15 factors compared between the two stocks.

About Tandy Leather Factory

Tandy Leather Factory, Inc. engages in the distribution of leather and related products. It offers leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. It operates through North America and International geographical segments. The North America geographical segment consists of 115 stores, which offer a broad selection of products combined with leathercraft expertise in a one-stop shop. The International geographical segment comprises of similar to North America segment but generally located in light industrial areas. The company was founded by J. Wray Thompson, Sr. and Ronald C. Morgan in 1980 and is headquartered in Fort Worth, TX.

About Boot Barn

Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing. The company also provides gifts and home merchandise. The company also sells its products through e-commerce websites, including bootbarn.com; sheplers.com; and countryoutfitter.com. The company was formerly known as WW Top Investment Corporation and changed its name to Boot Barn Holdings, Inc. in June 2014. Boot Barn Holdings, Inc. was founded in 1978 and is based in Irvine, California.