Ross Stores (NASDAQ:ROST – Get Free Report) and Tandy Leather Factory (NASDAQ:TLF – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Valuation and Earnings
This table compares Ross Stores and Tandy Leather Factory”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ross Stores | $22.75 billion | 3.21 | $2.15 billion | $8.26 | 27.67 |
| Tandy Leather Factory | $76.32 million | 0.26 | $9.10 million | ($0.17) | -14.41 |
Volatility & Risk
Ross Stores has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Tandy Leather Factory has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.
Profitability
This table compares Ross Stores and Tandy Leather Factory’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ross Stores | 10.85% | 39.29% | 15.79% |
| Tandy Leather Factory | -2.14% | -3.31% | -1.98% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Ross Stores and Tandy Leather Factory, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ross Stores | 0 | 6 | 15 | 0 | 2.71 |
| Tandy Leather Factory | 1 | 0 | 0 | 0 | 1.00 |
Ross Stores currently has a consensus price target of $263.76, suggesting a potential upside of 15.41%. Given Ross Stores’ stronger consensus rating and higher possible upside, analysts plainly believe Ross Stores is more favorable than Tandy Leather Factory.
Institutional & Insider Ownership
86.9% of Ross Stores shares are held by institutional investors. Comparatively, 56.4% of Tandy Leather Factory shares are held by institutional investors. 2.1% of Ross Stores shares are held by insiders. Comparatively, 36.2% of Tandy Leather Factory shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Ross Stores beats Tandy Leather Factory on 13 of the 14 factors compared between the two stocks.
About Ross Stores
Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd’s DISCOUNTS brand names in the United States. Its stores primarily offer apparel, accessories, footwear, and home fashions. The company’s Ross Dress for Less stores sell its products at department and specialty stores to middle income households; and dd’s DISCOUNTS stores sell its products at department and discount stores for households with moderate income. Ross Stores, Inc. was incorporated in 1957 and is headquartered in Dublin, California.
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.
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