Critical Survey: Kits Eyecare (OTCMKTS:KTYCF) and Tilly’s (NYSE:TLYS)

Tilly’s (NYSE:TLYS) and Kits Eyecare (OTCMKTS:KTYCF) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Earnings and Valuation

This table compares Tilly’s and Kits Eyecare”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tilly’s	$570.69 million	0.21	-$17.45 million	($0.11)	-36.27
Kits Eyecare	N/A	N/A	N/A	N/A	N/A

Kits Eyecare has lower revenue, but higher earnings than Tilly’s.

Insider & Institutional Ownership

76.4% of Tilly’s shares are held by institutional investors. 26.4% of Tilly’s shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tilly’s	-0.57%	-3.98%	-1.01%
Kits Eyecare	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings for Tilly’s and Kits Eyecare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tilly’s	1	2	0	0	1.67
Kits Eyecare	0	0	0	0	0.00

Tilly’s presently has a consensus target price of $5.50, indicating a potential upside of 37.84%. Given Tilly’s’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Tilly’s is more favorable than Kits Eyecare.

Summary

Tilly’s beats Kits Eyecare on 5 of the 8 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 Kits Eyecare

Kits Eyecare Ltd. operates a digital eyecare platform in the United States and Canada. It manufactures progressive and contact lenses, eyeglasses, and frames under the KITS brand, as well as distributes eyewear products of various brands. The company operates through a network of optical e-commerce websites, including KITS.com, KITS.ca, OptiContacts.com, and ContactsExpress.ca. Kits Eyecare Ltd. was founded in 2002 and is headquartered in Vancouver, Canada.