Tilly’s (NYSE:TLYS) versus Tandy Leather Factory (NASDAQ:TLF) Head-To-Head Comparison

Tilly’s (NYSE:TLYS) and Tandy Leather Factory (NASDAQ:TLF) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Tilly’s and Tandy Leather Factory, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tilly’s	0	3	0	0	2.00
Tandy Leather Factory	1	0	0	0	1.00

Tilly’s presently has a consensus target price of $5.50, indicating a potential upside of 31.55%. Given Tilly’s’ stronger consensus rating and higher probable upside, research analysts clearly believe Tilly’s is more favorable than Tandy Leather Factory.

Volatility & Risk

Tilly’s has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500. Comparatively, Tandy Leather Factory has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Earnings & Valuation

This table compares Tilly’s and Tandy Leather Factory”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tilly’s	$553.59 million	0.23	-$17.45 million	$0.06	69.68
Tandy Leather Factory	$76.32 million	0.22	$9.10 million	($0.17)	-12.00

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tilly’s	0.34%	2.37%	0.61%
Tandy Leather Factory	-2.14%	-3.31%	-1.98%

Insider and Institutional Ownership

76.4% of Tilly’s shares are held by institutional investors. Comparatively, 56.4% of Tandy Leather Factory shares are held by institutional investors. 26.4% of Tilly’s shares are held by company insiders. Comparatively, 36.2% of Tandy Leather Factory shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Tilly’s beats Tandy Leather Factory on 10 of the 13 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 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.