Reviewing Tapestry (NYSE:TPR) and Brunello Cucinelli (OTCMKTS:BCUCY)

Brunello Cucinelli (OTCMKTS:BCUCY) and Tapestry (NYSE:TPR) are both consumer cyclical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

90.8% of Tapestry shares are owned by institutional investors. 0.9% of Tapestry shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brunello Cucinelli	N/A	N/A	N/A
Tapestry	13.15%	39.78%	9.64%

Dividends

Brunello Cucinelli pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. Tapestry pays an annual dividend of $1.40 per share and has a dividend yield of 3.5%. Brunello Cucinelli pays out 15.5% of its earnings in the form of a dividend. Tapestry pays out 37.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation and Earnings

This table compares Brunello Cucinelli and Tapestry’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brunello Cucinelli	N/A	N/A	N/A	$0.24	193.64
Tapestry	$6.70 billion	1.39	$936.00 million	$3.78	10.69

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

Analyst Ratings

This is a summary of recent ratings and price targets for Brunello Cucinelli and Tapestry, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brunello Cucinelli	0	0	1	0	3.00
Tapestry	0	5	10	0	2.67

Tapestry has a consensus price target of $47.00, indicating a potential upside of 16.34%. Given Tapestry’s higher possible upside, analysts plainly believe Tapestry is more favorable than Brunello Cucinelli.

Summary

Tapestry beats Brunello Cucinelli on 10 of the 13 factors compared between the two stocks.

About Brunello Cucinelli

Brunello Cucinelli S.p.A., together with its subsidiaries, engages in the production and sale of clothing, accessories, and lifestyle products in Italy, Europe, North America, Japan, and China. The company offers women's collection, including coats and jackets, blazers, knitwear, suits, dresses, t-shirts and tops, shirts, skirts, pants, denim, travel wear; sneakers, heels, boots, loafers, sandals, flat shoes; jewelry, scarves, other accessories; mini bags and clutches; crossbody bags and backpacks; and handbags and shoppers. It also provides men's collection, such as coats and jackets, knitwear, blazers, suits, tuxedos, t-shirts and polos, shirts, pants, denims, travel wear; sneakers, lace-ups, loafers; leather goods, bags, hats, belts, scarves; other accessories; and kids collections. In addition, the company offers lifestyle products, which include throw and blanket, cushion, studio products, candle and fragrance, travel essential, décor sets, leisure wear, kitchen and table ware, and ceramic creation products. It manages and operates directly operated stores and wholesale monobrand boutiques. The company was founded in 1978 and is headquartered in Solomeo, Italy. Brunello Cucinelli S.p.A. is a subsidiary of Foro delle Arti 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.