Reviewing Tapestry (TPR) and Tandy Leather Factory (TLF)

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

Volatility & Risk

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Tandy Leather Factory has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Tapestry has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Dividends

Tapestry pays an annual dividend of $1.35 per share and has a dividend yield of 2.5%. Tandy Leather Factory does not pay a dividend. Tapestry pays out 62.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations for Tandy Leather Factory and Tapestry, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tandy Leather Factory 0 0 0 0 N/A
Tapestry 1 6 21 1 2.76

Tapestry has a consensus target price of $52.33, suggesting a potential downside of 2.54%. Given Tapestry’s higher probable upside, analysts plainly believe Tapestry is more favorable than Tandy Leather Factory.

Earnings and Valuation

This table compares Tandy Leather Factory and Tapestry’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tandy Leather Factory $82.32 million 0.86 $4.45 million $0.52 14.62
Tapestry $4.49 billion 3.41 $591.00 million $2.15 24.98

Tapestry has higher revenue and earnings than Tandy Leather Factory. Tandy Leather Factory 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 Tandy Leather Factory and Tapestry’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tandy Leather Factory 5.41% 8.34% 6.55%
Tapestry 6.14% 23.68% 10.98%

Institutional & Insider Ownership

53.0% of Tandy Leather Factory shares are owned by institutional investors. Comparatively, 89.4% of Tapestry shares are owned by institutional investors. 43.2% of Tandy Leather Factory shares are owned by insiders. Comparatively, 1.0% of Tapestry shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Tapestry beats Tandy Leather Factory on 13 of the 16 factors compared between the two stocks.

Tandy Leather Factory Company Profile

Tandy Leather Factory, Inc. operates as a retailer and wholesale distributor of a range of leather and leathercraft related items. It operates through two segments, North America and International. The company offers leather, quality tools, hardware, accessories, liquids, lace, kits, open workbenches, and teaching materials. It also manufactures leather lace and do-it-yourself kits. The company sells its products through company-owned stores; and through phone, mail order, and orders generated from its Website, tandyleather.com. As of March 7, 2018, the company had 115 North American stores located in 42 states of the United States and 7 Canadian provinces; and 2 stores located in the United Kingdom, 1 located in Australia, and 1 located in Spain. It serves individual retail customers; wholesale, manufacturer, and institutional groups; and equine-related shops, cobblers, dealers, and retailers dispersed in Europe, Australia, and Asia. The company was formerly known as The Leather Factory, Inc. and changed its name to Tandy Leather Factory, Inc. in 2005. Tandy Leather Factory, Inc. was founded in 1980 and is headquartered in Fort Worth, Texas.

Tapestry Company Profile

Tapestry, Inc. provides luxury accessories and lifestyle brands. It offers handbags, wallets, money pieces, wristlets and cosmetic cases, key rings, and charms, as well as address books, time management accessories, sketchbooks, and portfolios for women; and business cases, computer bags, messenger-style bags, backpacks, totes, wallets, card cases, belts, sunglasses, watches, novelty accessories, and ready-to-wear for men. The company also provides footwear; seasonal lifestyle apparel collections, including outerwear and ready-to-wear, gloves, scarves, and hats; jewelry, such as bracelets, necklaces, rings, and earrings made with sterling silver, leather, and non-precious metals; sunglasses; watches; and fragrances comprising perfume sprays, toilette sprays, purse sprays, and body creams for women. In addition, it offers children's wear, tech and home decor products; and weekend and travel accessories, travel bags, and other lifestyle products. Further, the company licenses rights to market and distribute its eyewear, watches, and fragrances under the Coach brand name. It markets its products to consumers through a network of Coach-operated stores, including Internet in North America; and Coach-operated stores and concession shop-in-shops in Japan, Mainland China, Hong Kong, Macau, Singapore, Taiwan, Malaysia, South Korea, the United Kingdom, France, Ireland, Spain, Portugal, Germany, Italy, Austria, Belgium, the Netherlands, and Switzerland, as well as to wholesale customers and distributors in approximately 55 countries. The company sells its Stuart Weitzman products through department stores; independent third party distributors; and stores, including the Internet. It operates approximately 1,300 stores under the Coach, kate spade new york, and Stuart Weitzman brands. 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.

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