Critical Survey: Tandy Brands Accessories (OTCMKTS:TBACQ) & Ralph Lauren (NYSE:RL)

Ralph Lauren (NYSE:RL) and Tandy Brands Accessories (OTCMKTS:TBACQ) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Profitability

This table compares Ralph Lauren and Tandy Brands Accessories’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ralph Lauren	11.73%	37.97%	13.40%
Tandy Brands Accessories	N/A	N/A	N/A

Valuation & Earnings

This table compares Ralph Lauren and Tandy Brands Accessories”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ralph Lauren	$7.08 billion	2.86	$742.90 million	$14.69	22.77
Tandy Brands Accessories	N/A	N/A	N/A	N/A	N/A

Ralph Lauren has higher revenue and earnings than Tandy Brands Accessories.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Ralph Lauren and Tandy Brands Accessories, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ralph Lauren	1	3	14	2	2.85
Tandy Brands Accessories	0	0	0	0	0.00

Ralph Lauren presently has a consensus target price of $389.06, indicating a potential upside of 16.30%. Given Ralph Lauren’s stronger consensus rating and higher probable upside, research analysts clearly believe Ralph Lauren is more favorable than Tandy Brands Accessories.

Institutional & Insider Ownership

67.9% of Ralph Lauren shares are held by institutional investors. 38.3% of Ralph Lauren shares are held by company insiders. Comparatively, 6.6% of Tandy Brands Accessories shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Ralph Lauren beats Tandy Brands Accessories on 10 of the 10 factors compared between the two stocks.

About Ralph Lauren

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men’s, women’s, and children’s clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bed and bath lines, furniture, fabric and wallcoverings, floor coverings, lighting, tabletop, kitchen linens, floor coverings, dining, decorative accessories, and giftware; and fragrances. It sells apparel and accessories under the Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Golf Ralph Lauren, Ralph Lauren Golf, RLX Ralph Lauren, Polo Ralph Lauren Children, and Chaps brands; women’s fragrances under the Ralph Lauren Collection, Woman by Ralph Lauren, Romance Collection, and Ralph Collection brand names; and men’s fragrances under the Ralph’s Club, Purple Label, Polo Blue, Polo Red, Polo Green, Polo Black, Polo 67, Safari, Polo Sport, and Big Pony Men’s brand names. The company’s restaurant collection includes The Polo Bar in New York City; RL Restaurant in Chicago; Ralph’s in Paris; The Bar at Ralph Lauren located in Milan; Ralph’s Bar located in Chengdu, China; and Ralph’s Coffee concept. It sells its products to department stores, specialty stores, and golf and pro shops, as well as directly to consumers through its retail stores, concession-based shop-within-shops, and its digital commerce sites. The company directly operates retail stores and concession-based shop-within-shops; and operates Ralph Lauren stores and stores and shops through licensing partners. Ralph Lauren Corporation was founded in 1967 and is headquartered in New York, New York.

About Tandy Brands Accessories

Tandy Brands Accessories, Inc. engages in the design and marketing of accessories. Its products include belts, gifts, small leather goods, and bags for men, women, and children. The company was founded in November 1990 and is headquartered in Dallas, TX.