Tilly’s (NYSE: TLYS) and Kate Spade & Co (NYSE:KATE) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Insider & Institutional Ownership

40.4% of Tilly’s shares are owned by institutional investors. Comparatively, 97.9% of Kate Spade & Co shares are owned by institutional investors. 53.4% of Tilly’s shares are owned by company insiders. Comparatively, 0.8% of Kate Spade & Co shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Tilly’s has a beta of -0.47, indicating that its stock price is 147% less volatile than the S&P 500. Comparatively, Kate Spade & Co has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Tilly’s and Kate Spade & Co, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tilly’s 0 2 2 0 2.50
Kate Spade & Co 1 13 1 0 2.00

Tilly’s currently has a consensus price target of $11.50, indicating a potential upside of 4.36%. Kate Spade & Co has a consensus price target of $20.04, indicating a potential upside of 8.39%. Given Kate Spade & Co’s higher probable upside, analysts clearly believe Kate Spade & Co is more favorable than Tilly’s.

Profitability

This table compares Tilly’s and Kate Spade & Co’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tilly’s 2.09% 8.85% 5.50%
Kate Spade & Co 0.44% 1.11% 0.43%

Earnings and Valuation

This table compares Tilly’s and Kate Spade & Co’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tilly’s $572.08 million 0.56 $48.76 million $0.41 26.88
Kate Spade & Co N/A N/A N/A $1.11 16.66

Tilly’s has higher revenue and earnings than Kate Spade & Co. Kate Spade & Co is trading at a lower price-to-earnings ratio than Tilly’s, indicating that it is currently the more affordable of the two stocks.

Summary

Tilly’s beats Kate Spade & Co on 7 of the 11 factors compared between the two stocks.

About Tilly’s

Tilly’s, Inc. is a destination specialty retailer of casual apparel, footwear and accessories for young men, young women, boys and girls. The Company offers an unparalleled selection of relevant brands, styles, colors, sizes and price points. The Company’s apparel merchandise includes branded, fashion and styles for tops, outerwear, bottoms and dresses. Its accessories merchandise includes backpacks, hats, sunglasses, headphones, handbags, watches, jewelry and others. The Company offers its products through stores and Website. The Company operates over 220 stores in approximately 30 states. The Company’s stores are located in malls, lifestyle centers, power centers, community centers, outlet centers and street-front locations. The Company also operates an e-commerce platform for desktop and mobile. The Company’s third-party brands include AYC, Adidas, Billabong, Converse, Hurley, Nixon, JanSport, LRG and Stance, among others.

About Kate Spade & Co

Kate Spade & Company is engaged in the design and marketing of a range of accessories and apparel. It operates through three segments. The KATE SPADE North America segment consists of the Company’s kate spade new york and JACK SPADE brands in North America. The KATE SPADE International segment consists of the Company’s kate spade new york and JACK SPADE brands in international markets, which operates principally in Japan, Asia (excluding Japan), Europe and Latin America). The Adelington Design Group segment primarily consists of exclusive arrangements to supply jewelry for the LIZ CLAIBORNE and MONET brands. In addition, the Adelington Design Group segment serves J.C. Penney Corporation, Inc. (JCPenney) through exclusive supplier agreements for the LIZ CLAIBORNE and MONET jewelry lines. As of December 31, 2016, it operated 98 the United States Specialty Retail Stores; 35 Foreign Specialty Retail Stores; 65 the United States Outlet Stores; 17 Foreign Outlet Stores, and 54 Concessions.

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