Head-To-Head Contrast: Tilly’s (NYSE:TLYS) & Tapestry (NYSE:TPR)

Tilly’s (NYSE:TLYS) and Tapestry (NYSE:TPR) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Risk & Volatility

Tilly’s has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Tapestry has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.

Institutional & Insider Ownership

76.4% of Tilly’s shares are held by institutional investors. Comparatively, 90.8% of Tapestry shares are held by institutional investors. 2.8% of Tilly’s shares are held by company insiders. Comparatively, 1.3% of Tapestry shares are held by company 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.

Valuation and Earnings

This table compares Tilly’s and Tapestry”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tilly’s	$553.59 million	0.24	-$17.45 million	($0.11)	-40.08
Tapestry	$7.01 billion	4.15	$183.20 million	$3.12	46.18

Tapestry has higher revenue and earnings than Tilly’s. Tilly’s is trading at a lower price-to-earnings ratio than Tapestry, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Tilly’s and Tapestry, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tilly’s	1	2	0	0	1.67
Tapestry	0	4	15	2	2.90

Tilly’s currently has a consensus target price of $5.50, suggesting a potential upside of 24.74%. Tapestry has a consensus target price of $165.12, suggesting a potential upside of 14.61%. Given Tilly’s’ higher possible upside, analysts plainly believe Tilly’s is more favorable than Tapestry.

Profitability

This table compares Tilly’s and Tapestry’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tilly’s	-0.57%	-3.98%	-1.01%
Tapestry	8.44%	229.70%	22.06%

Summary

Tapestry beats Tilly’s on 13 of the 15 factors compared between the two stocks.

About Tilly’s

Tilly’s, Inc. engages in the retail of casual apparel, footwear, and accessories. Its stores are located in retail centers, including malls, lifestyle centers, power centers, community centers, outlet centers, and street-front locations. The company was founded by Hezy Shaked and Tilly Levine in 1982 and is headquartered in Irvine, CA.

About Tapestry

Tapestry, Inc. provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women’s handbags; and women’s accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms. The company also provides men products, which includes bag collections, such as business cases, computer bags, messenger-style bags, backpacks, and totes; small leather goods including wallets, card cases, travel organizers, and belts; and footwear, watches, fragrances, sunglasses, novelty accessories, and ready-to-wear items. In addition, it offers other products including women’s footwear and fragrances; eyewear and sunglasses; and jewelry, such as bracelets, necklaces, rings, and earrings, watches, and other women’s seasonal lifestyle apparel collections, including outerwear, ready-to-wear and cold weather accessories, such as gloves, scarves, and hats. Further, the company provides kids items, housewares, and home accessories, such as fashion bedding and tableware, stationery, and gifts. It offers its products through e-commerce sites and concession shop-in-shops, wholesale, and third-party distributors under the Coach, Kate Spade, and Stuart Weitzman brand names. The company was formerly known as Coach, Inc. and changed its name to Tapestry, Inc. in October 2017. Tapestry, Inc. was founded in 1941 and is headquartered in New York, New York.