Tandy Leather Factory (NASDAQ:TLF) and Ross Stores (NASDAQ:ROST) Head-To-Head Survey

Ross Stores (NASDAQ:ROST) and Tandy Leather Factory (NASDAQ:TLF) 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

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

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.