Critical Contrast: Tapestry (NYSE:TPR) versus Cache (OTCMKTS:CACH)

Cache (OTCMKTS:CACH) and Tapestry (NYSE:TPR) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Institutional & Insider Ownership

90.8% of Tapestry shares are held by institutional investors. 23.0% of Cache shares are held by company insiders. Comparatively, 1.3% of Tapestry shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Cache and Tapestry, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cache	0	0	0	0	0.00
Tapestry	0	4	15	2	2.90

Tapestry has a consensus target price of $169.88, suggesting a potential upside of 25.63%. Given Tapestry’s stronger consensus rating and higher probable upside, analysts plainly believe Tapestry is more favorable than Cache.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cache	N/A	N/A	N/A
Tapestry	8.44%	229.70%	22.06%

Earnings & Valuation

This table compares Cache and Tapestry”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cache	N/A	N/A	N/A	N/A	N/A
Tapestry	$7.85 billion	3.48	$183.20 million	$3.12	43.34

Tapestry has higher revenue and earnings than Cache.

Summary

Tapestry beats Cache on 9 of the 10 factors compared between the two stocks.

About Cache

Cache, Inc., together with its subsidiaries, operates as a mall-based and online woman’s specialty retailer of apparel and accessories in the United States. The company designs and markets sportswear, such as tops, sweaters, and jackets and bottoms for day or evening events; dresses ranges from shorter lengths to long for day, evening, and events; and accessories, including jewelry, belts, scarves, and handbags under the Cache brand name. The company was founded in 1975 and is headquartered in New York, New York.

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.