Tapestry (NYSE:TPR) & Tilly’s (NYSE:TLYS) Financial Comparison

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

Insider & Institutional Ownership

90.8% of Tapestry shares are owned by institutional investors. Comparatively, 76.4% of Tilly’s shares are owned by institutional investors. 1.3% of Tapestry shares are owned by insiders. Comparatively, 2.8% of Tilly’s shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

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

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

Tapestry presently has a consensus price target of $165.12, indicating a potential upside of 11.88%. Tilly’s has a consensus price target of $5.50, indicating a potential upside of 0.99%. Given Tapestry’s stronger consensus rating and higher possible upside, equities analysts clearly believe Tapestry is more favorable than Tilly’s.

Earnings and Valuation

This table compares Tapestry and Tilly’s”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tapestry	$7.01 billion	4.25	$183.20 million	$3.12	47.30
Tilly’s	$553.59 million	0.30	-$17.45 million	($0.11)	-49.51

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.

Profitability

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

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

Volatility and Risk

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

Summary

Tapestry beats Tilly’s on 14 of the 15 factors compared between the two stocks.

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.

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.