Analyzing Tapestry (TPR) & The Competition

Tapestry (NYSE:TPR) is one of 117 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it contrast to its rivals? We will compare Tapestry to similar companies based on the strength of its risk, profitability, analyst recommendations, dividends, institutional ownership, earnings and valuation.

Dividends

Tapestry pays an annual dividend of $1.85 per share and has a dividend yield of 1.4%. Tapestry pays out 23.8% of its earnings in the form of a dividend. As a group, “Textiles, Apparel & Luxury Goods” companies pay a dividend yield of 3.5% and pay out 23.0% of their earnings in the form of a dividend. Tapestry has raised its dividend for 3 consecutive years. Tapestry lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

Tapestry has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, Tapestry’s rivals have a beta of 0.92, indicating that their average share price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Tapestry and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tapestry	0	5	16	1	2.82
Tapestry Competitors	1657	7665	10089	365	2.46

Tapestry presently has a consensus target price of $167.26, suggesting a potential upside of 26.29%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 10.05%. Given Tapestry’s stronger consensus rating and higher probable upside, research analysts plainly believe Tapestry is more favorable than its rivals.

Institutional & Insider Ownership

90.8% of Tapestry shares are owned by institutional investors. Comparatively, 54.1% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by institutional investors. 1.3% of Tapestry shares are owned by insiders. Comparatively, 16.1% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Tapestry and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tapestry	19.68%	274.20%	23.66%
Tapestry Competitors	-3.21%	14.02%	2.94%

Earnings & Valuation

This table compares Tapestry and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tapestry	$8.00 billion	$1.53 billion	17.05
Tapestry Competitors	$5.67 billion	$471.75 million	23.88

Tapestry has higher revenue and earnings than its rivals. Tapestry is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Tapestry beats its rivals on 11 of the 15 factors compared.

About Tapestry

Tapestry, Inc. is a global fashion company whose portfolio includes Coach and Kate Spade New York. The company designs and sells handbags, accessories, footwear, apparel, jewelry and other lifestyle products through retail stores, e-commerce and wholesale partners. Based in New York, Tapestry serves customers in North America and international markets, including Asia and Europe. Its brands reach consumers through company-operated stores and digital channels as well as select department stores and other retail partners.