Michael Kors (NYSE: KORS) and Tandy Leather Factory (NASDAQ:TLF) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.
Institutional & Insider Ownership
85.6% of Michael Kors shares are owned by institutional investors. Comparatively, 53.0% of Tandy Leather Factory shares are owned by institutional investors. 6.0% of Michael Kors shares are owned by company insiders. Comparatively, 43.2% of Tandy Leather Factory shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of recent ratings for Michael Kors and Tandy Leather Factory, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tandy Leather Factory||0||0||0||0||N/A|
Michael Kors presently has a consensus target price of $64.54, suggesting a potential downside of 0.73%. Given Michael Kors’ higher probable upside, research analysts plainly believe Michael Kors is more favorable than Tandy Leather Factory.
Risk & Volatility
Michael Kors has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500. Comparatively, Tandy Leather Factory has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.
Earnings & Valuation
This table compares Michael Kors and Tandy Leather Factory’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Michael Kors||$4.49 billion||2.20||$552.50 million||$4.24||15.33|
|Tandy Leather Factory||$82.32 million||0.84||$4.45 million||$0.52||14.42|
Michael Kors has higher revenue and earnings than Tandy Leather Factory. Tandy Leather Factory is trading at a lower price-to-earnings ratio than Michael Kors, indicating that it is currently the more affordable of the two stocks.
This table compares Michael Kors and Tandy Leather Factory’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%|
Michael Kors beats Tandy Leather Factory on 11 of the 13 factors compared between the two stocks.
About Michael Kors
Michael Kors Holdings Limited design, markets, distributes, and retails branded women's apparel and accessories, and men's apparel. The company operates in three segments: Retail, Wholesale, and Licensing. The Retail segment is involved in the sale of women's apparel; men's apparel; accessories, which include handbags and small leather goods, such as wallets; footwear; and licensed products comprising watches, jewelry, fragrances, beauty products, and eyewear. It operates collection stores and lifestyle stores, including concessions and outlet stores. As of April 1, 2017, this segment operated 398 retail stores in the United States, Canada, and Latin America, including concessions; and 429 international retail stores, including concessions in Europe and Asia, as well as e-commerce sites in the United States, Canada, France, Germany, Italy, Spain, Switzerland, the United Kingdom, China, and Japan. The Wholesale segment sells accessories, such as handbags and small leather goods, footwear, and women's and men's apparel to department stores and specialty shops in the United States, Canada, Latin America, Europe, and Asia. The Licensing segment licenses its trademarks on products, such as fragrances, beauty, eyewear, belts, cold weather accessories, jewelry, watches, coats, men's suits, swimwear, socks, furs, and ties, as well as licenses rights to third parties to sell the company's products in various geographical regions, such as Brazil, the Middle East, Eastern Europe, Asia, and Australia. The company sells its products under the names of MICHAEL KORS, MICHAEL MICHAEL KORS, and various other related trademarks and logos. Michael Kors Holdings Limited was founded in 1981 and is based in London, the United Kingdom.
About Tandy Leather Factory
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.
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