Head-To-Head Contrast: Tilly’s (NYSE:TLYS) versus Academy Sports and Outdoors (NASDAQ:ASO)

Tilly’s (NYSE:TLYS) and Academy Sports and Outdoors (NASDAQ:ASO) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Volatility and Risk

Tilly’s has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500. Comparatively, Academy Sports and Outdoors has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Earnings and Valuation

This table compares Tilly’s and Academy Sports and Outdoors”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tilly’s	$553.59 million	0.25	-$17.45 million	$0.06	75.95
Academy Sports and Outdoors	$6.05 billion	0.57	$376.77 million	$6.00	9.29

Academy Sports and Outdoors has higher revenue and earnings than Tilly’s. Academy Sports and Outdoors is trading at a lower price-to-earnings ratio than Tilly’s, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tilly’s and Academy Sports and Outdoors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tilly’s	0.34%	2.37%	0.61%
Academy Sports and Outdoors	6.39%	18.36%	7.29%

Insider & Institutional Ownership

76.4% of Tilly’s shares are owned by institutional investors. 26.4% of Tilly’s shares are owned by company insiders. Comparatively, 4.1% of Academy Sports and Outdoors shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Tilly’s and Academy Sports and Outdoors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tilly’s	0	3	0	0	2.00
Academy Sports and Outdoors	0	8	6	1	2.53

Tilly’s currently has a consensus target price of $5.50, indicating a potential upside of 20.69%. Academy Sports and Outdoors has a consensus target price of $58.54, indicating a potential upside of 4.96%. Given Tilly’s’ higher possible upside, equities analysts plainly believe Tilly’s is more favorable than Academy Sports and Outdoors.

Summary

Academy Sports and Outdoors beats Tilly’s on 11 of the 15 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 Academy Sports and Outdoors

Academy Sports and Outdoors, Inc., through its subsidiaries, operates as a sporting goods and outdoor recreational retailer in the United States. The company outdoor division comprises camping products, such as coolers and drinkware, and camping accessories and equipment,; fishing products, including marine equipment and fishing rods, reels, and baits and equipment; and hunting products, which includes firearms, ammunition, archery and archery equipment, camouflage apparel, waders, shooting accessories, gun safes, optics, airguns, and hunting equipment. Its sports and recreation division offers fitness equipment, fitness accessories, and nutrition supplies; team and specialty sports equipment, including baseball, football, basketball, soccer, golf, racket sports, volleyball, backpacks, and sports bags; recreation products, which includes patio furniture, outdoor cooking, trampolines, play sets, watersports, and pet equipment, as well as wheeled goods including bicycles, skateboards, and other ride-on toys; and electronics and watches, as well as front-end products, such as consumables, batteries, etc. The company's apparel division provides outdoor and seasonal apparel, denim, work apparel, graphic t-shirts, and accessories; boys and girls outdoor, and athletic apparel; sporting and fitness apparel; and professional and collegiate team licensed apparel and accessories. Its footwear division offers casual shoes, slippers, seasonal footwear, and socks; work and western boots, shoes, and hunting footwear; boys and girls footwear; athletic footwear, such as running shoes, athletic lifestyle, and training shoes; and team and specialty sports footwear, and slides. The company sells its products under the Academy Sports + Outdoors, Magellan Outdoors, BCG, O'rageous, Game Winner, Outdoor Gourmet, and Freely brand names. Academy Sports and Outdoors, Inc. was founded in 1938 and is headquartered in Katy, Texas.