Sequential Brands Group (NASDAQ: SQBG) and Tilly's (NYSE:TLYS) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.
Institutional and Insider Ownership
45.4% of Sequential Brands Group shares are owned by institutional investors. Comparatively, 46.9% of Tilly's shares are owned by institutional investors. 27.3% of Sequential Brands Group shares are owned by company insiders. Comparatively, 50.1% of Tilly's shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a breakdown of current recommendations for Sequential Brands Group and Tilly's, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sequential Brands Group||0||4||3||0||2.43|
Sequential Brands Group presently has a consensus target price of $7.00, indicating a potential upside of 196.61%. Tilly's has a consensus target price of $17.00, indicating a potential upside of 45.92%. Given Sequential Brands Group’s higher probable upside, research analysts plainly believe Sequential Brands Group is more favorable than Tilly's.
This table compares Sequential Brands Group and Tilly's’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sequential Brands Group||-110.90%||4.28%||1.57%|
Risk and Volatility
Sequential Brands Group has a beta of -0.27, indicating that its stock price is 127% less volatile than the S&P 500. Comparatively, Tilly's has a beta of -0.39, indicating that its stock price is 139% less volatile than the S&P 500.
Valuation and Earnings
This table compares Sequential Brands Group and Tilly's’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sequential Brands Group||$167.46 million||0.89||-$185.72 million||($2.94)||-0.80|
|Tilly's||$576.90 million||0.58||$14.70 million||$0.50||23.30|
Tilly's has higher revenue and earnings than Sequential Brands Group. Sequential Brands Group is trading at a lower price-to-earnings ratio than Tilly's, indicating that it is currently the more affordable of the two stocks.
Tilly's beats Sequential Brands Group on 10 of the 14 factors compared between the two stocks.
Sequential Brands Group Company Profile
Sequential Brands Group, Inc. owns a portfolio of consumer brands in the fashion, home, athletic and lifestyle categories. The Company’s portfolio of consumer brands includes Martha Stewart, Emeril Lagasse, Jessica Simpson, Joe’s Jeans, William Rast, Ellen Tracy, Revo, AND1 and Avia. The Company’s brands are licensed for a range of product categories, including apparel, footwear, eyewear, fashion accessories and home goods. The Company licenses brands to both wholesale and direct-to-retail licensees. The Company licenses the Martha Stewart brand to various licensees, including retailers, such as Macy’s, The Home Depot, PetSmart and Staples. The Jessica Simpson Collection is a signature lifestyle concept designed in collaboration with Jessica Simpson, which offers various product categories, including footwear, apparel, fragrance, fashion accessories, maternity apparel, girls clothing and a home line. The Avia brand offers running and activewear products.
Tilly's Company Profile
Tilly’s, Inc. is a destination specialty retailer of casual apparel, footwear and accessories for young men, young women, boys and girls. The Company offers an unparalleled selection of relevant brands, styles, colors, sizes and price points. The Company’s apparel merchandise includes branded, fashion and styles for tops, outerwear, bottoms and dresses. Its accessories merchandise includes backpacks, hats, sunglasses, headphones, handbags, watches, jewelry and others. The Company offers its products through stores and Website. The Company operates over 220 stores in approximately 30 states. The Company’s stores are located in malls, lifestyle centers, power centers, community centers, outlet centers and street-front locations. The Company also operates an e-commerce platform for desktop and mobile. The Company’s third-party brands include AYC, Adidas, Billabong, Converse, Hurley, Nixon, JanSport, LRG and Stance, among others.
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