Financial Survey: Tapestry (NYSE:TPR) & Geox (OTCMKTS:GXSBF)

Geox (OTCMKTS:GXSBF) and Tapestry (NYSE:TPR) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Geox	N/A	N/A	N/A
Tapestry	19.09%	254.95%	22.75%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Geox	N/A	N/A	N/A	($0.06)	-5.73
Tapestry	$8.00 billion	3.13	$1.53 billion	$7.29	17.25

Tapestry has higher revenue and earnings than Geox. Geox is trading at a lower price-to-earnings ratio than Tapestry, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Geox and Tapestry, as reported by MarketBeat.

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

Tapestry has a consensus price target of $175.12, indicating a potential upside of 39.26%. Given Tapestry’s stronger consensus rating and higher probable upside, analysts plainly believe Tapestry is more favorable than Geox.

Insider & Institutional Ownership

11.8% of Geox shares are owned by institutional investors. Comparatively, 90.8% of Tapestry shares are owned by institutional investors. 1.3% of Tapestry shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Tapestry beats Geox on 12 of the 12 factors compared between the two stocks.

About Geox

Geox S.p.A. creates, produces, promotes, and distributes footwear and apparel to retailers and end consumers in Italy, Europe, North America, and internationally. The company offers shoes and apparel under the Geox brand name through multi-brand selling points, Geox Shops, and e-commerce channels. The company is based in Montebelluna, Italy. Geox S.p.A. is a subsidiary of LIR S.r.l.

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.