Tumi Holdings (NYSE: TUMI) and Differential Brands Group (NASDAQ:DFBG) are both cyclical consumer goods & services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitabiliy.

Profitability

This table compares Tumi Holdings and Differential Brands Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tumi Holdings 8.95% 10.52% 8.26%
Differential Brands Group -8.79% -23.53% -6.57%

Institutional & Insider Ownership

1.5% of Differential Brands Group shares are owned by institutional investors. 62.5% of Differential Brands Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Tumi Holdings and Differential Brands Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tumi Holdings 0 0 0 0 N/A
Differential Brands Group 0 0 1 0 3.00

Differential Brands Group has a consensus target price of $5.00, suggesting a potential upside of 150.00%. Given Differential Brands Group’s higher probable upside, analysts plainly believe Differential Brands Group is more favorable than Tumi Holdings.

Valuation and Earnings

This table compares Tumi Holdings and Differential Brands Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tumi Holdings N/A N/A N/A N/A N/A
Differential Brands Group $155.65 million 0.17 $3.42 million ($1.06) -1.89

Differential Brands Group has higher revenue and earnings than Tumi Holdings.

Summary

Differential Brands Group beats Tumi Holdings on 5 of the 8 factors compared between the two stocks.

Tumi Holdings Company Profile

Tumi Holdings, Inc. (Tumi) offers a line of travel and business products and accessories in multiple categories. The Company operates through four segments: Direct-to-Consumer North America, which sells its products directly to consumers through a network of approximately 150 company-owned retail stores consisting of full-price stores and outlet stores; Direct-to-Consumer International, which sells its products directly to consumers through a network of over 20 company-owned full-price and outlet stores in street venues and select malls in international locations; Indirect-to-Consumer North America, which sells its products to wholesale customers in North America through approximately 800 doors, including specialty luggage retailers, prestige department stores and business-to-business channels, and Indirect-to-Consumer International, which sells its products to international wholesale customers through approximately 1,000 doors.

Differential Brands Group Company Profile

Differential Brands Group Inc., formerly Joe’s Jeans Inc., is engaged in the design, development and marketing of apparel products, which include denim jeans, related casual wear and accessories. The Company offers its products under various brands, such as Hudson, Robert Graham and SWIMS. Its segments are Wholesale and Retail. Its Wholesale segment consists of sales of Hudson products to retailers, specialty stores and international distributors. Its Retail segment consists of sales of its products to consumers through its retail Internet sites for Hudson products. The Hudson product line includes women’s, men’s and children’s denim jeans, pants and other bottoms. The Robert Graham product line includes men’s sport shirts, pants, sweaters, knits, t-shirts, sportcoats, outerwear and swimwear. Through SWIMS brand, it distributes a range of footwear, swimwear, outerwear, ready-to-wear and accessories across the world through department stores, independent specialty and luxury resorts.

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