Head-To-Head Survey: Tandy Leather Factory (NASDAQ:TLF) vs. Tilly’s (NYSE:TLYS)

Tandy Leather Factory (NASDAQ:TLF) and Tilly’s (NYSE:TLYS) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Volatility & Risk

Tandy Leather Factory has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Tilly’s has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500.

Profitability

This table compares Tandy Leather Factory and Tilly’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tandy Leather Factory	-2.14%	-3.31%	-1.98%
Tilly’s	0.34%	2.37%	0.61%

Earnings & Valuation

This table compares Tandy Leather Factory and Tilly’s”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tandy Leather Factory	$76.32 million	0.22	$9.10 million	($0.17)	-12.00
Tilly’s	$553.59 million	0.23	-$17.45 million	$0.06	69.68

Tandy Leather Factory has higher earnings, but lower revenue than Tilly’s. Tandy Leather Factory is trading at a lower price-to-earnings ratio than Tilly’s, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tandy Leather Factory	1	0	0	0	1.00
Tilly’s	0	3	0	0	2.00

Tilly’s has a consensus target price of $5.50, suggesting a potential upside of 31.55%. Given Tilly’s’ stronger consensus rating and higher probable upside, analysts plainly believe Tilly’s is more favorable than Tandy Leather Factory.

Insider and Institutional Ownership

56.4% of Tandy Leather Factory shares are owned by institutional investors. Comparatively, 76.4% of Tilly’s shares are owned by institutional investors. 36.2% of Tandy Leather Factory shares are owned by insiders. Comparatively, 26.4% of Tilly’s shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Tilly’s beats Tandy Leather Factory on 10 of the 13 factors compared between the two stocks.

About Tandy Leather Factory

Tandy Leather Factory, Inc. engages in the distribution of leather and related products. It offers leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. It operates through North America and International geographical segments. The North America geographical segment consists of 115 stores, which offer a broad selection of products combined with leathercraft expertise in a one-stop shop. The International geographical segment comprises of similar to North America segment but generally located in light industrial areas. The company was founded by J. Wray Thompson, Sr. and Ronald C. Morgan in 1980 and is headquartered in Fort Worth, TX.

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.