Warby Parker (NYSE:WRBY) vs. Tractor Supply (NASDAQ:TSCO) Financial Contrast

Tractor Supply (NASDAQ:TSCO) and Warby Parker (NYSE:WRBY) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Earnings & Valuation

This table compares Tractor Supply and Warby Parker”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tractor Supply	$15.52 billion	1.09	$1.10 billion	$1.92	16.81
Warby Parker	$871.91 million	3.33	$1.64 million	$0.07	382.93

Tractor Supply has higher revenue and earnings than Warby Parker. Tractor Supply is trading at a lower price-to-earnings ratio than Warby Parker, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Tractor Supply and Warby Parker, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tractor Supply	3	12	13	0	2.36
Warby Parker	0	4	7	0	2.64

Tractor Supply presently has a consensus price target of $39.31, indicating a potential upside of 21.81%. Warby Parker has a consensus price target of $30.08, indicating a potential upside of 12.23%. Given Tractor Supply’s higher possible upside, analysts clearly believe Tractor Supply is more favorable than Warby Parker.

Profitability

This table compares Tractor Supply and Warby Parker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tractor Supply	6.42%	41.74%	9.42%
Warby Parker	0.85%	3.36%	1.72%

Volatility and Risk

Tractor Supply has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Warby Parker has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500.

Institutional & Insider Ownership

98.7% of Tractor Supply shares are owned by institutional investors. Comparatively, 93.2% of Warby Parker shares are owned by institutional investors. 0.6% of Tractor Supply shares are owned by company insiders. Comparatively, 16.8% of Warby Parker shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Tractor Supply beats Warby Parker on 9 of the 14 factors compared between the two stocks.

About Tractor Supply

Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers various merchandise, including livestock and equine feed and equipment, poultry, fencing, and sprayers and chemicals; food, treats, and equipment for dogs, cats, and other small animals, as well as dog wellness products; seasonal and recreation products comprising tractors and riders, lawn and garden, bird feeding, power equipment, and other recreational products; truck, tool, and hardware products, such as truck accessories, trailers, generators, lubricants, batteries, and hardware and tools; and clothing, gift, and décor products consist of clothing, footwear, toys, snacks, and decorative merchandise. It provides its products under the 4health, Paws & Claws, American Farmworks, Producer's Pride, Bit & Bridle, Red Shed, Blue Mountain, Redstone, C.E. Schmidt, Retriever, Country Lane, Ridgecut, Countyline, Royal Wing, Country Tuff, Strive, Dumor, Traveller, Farm Table, Treeline, Groundwork, TSC Tractor Supply Co, Huskee, Untamed, and JobSmart brand names. The company operates its retail stores under the Tractor Supply Company, Petsense by Tractor Supply, and Orscheln Farm and Home names; and operates websites under the TractorSupply.com and Petsense.com names. It sells its products to recreational farmers, ranchers, and others. Tractor Supply Company was founded in 1938 and is based in Brentwood, Tennessee.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.