Tilly’s (NYSE:TLYS) and Industria de Diseno Textil (OTCMKTS:IDEXY) Head to Head Survey

Tilly’s (NYSE:TLYS) and Industria de Diseno Textil (OTCMKTS:IDEXY) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Risk & Volatility

Tilly’s has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Industria de Diseno Textil has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Tilly’s and Industria de Diseno Textil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tilly’s	1	4	0	0	1.80
Industria de Diseno Textil	0	0	1	4	3.80

Tilly’s presently has a consensus price target of $2.25, indicating a potential upside of 22.95%. Given Tilly’s’ higher possible upside, equities research analysts clearly believe Tilly’s is more favorable than Industria de Diseno Textil.

Earnings & Valuation

This table compares Tilly’s and Industria de Diseno Textil”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tilly’s	$569.45 million	0.10	-$46.23 million	($1.14)	-1.61
Industria de Diseno Textil	$41.81 billion	4.77	$6.32 billion	$0.55	29.05

Industria de Diseno Textil has higher revenue and earnings than Tilly’s. Tilly’s is trading at a lower price-to-earnings ratio than Industria de Diseno Textil, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tilly’s and Industria de Diseno Textil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tilly’s	-6.24%	-39.59%	-10.17%
Industria de Diseno Textil	15.40%	33.70%	17.78%

Institutional and Insider Ownership

76.4% of Tilly’s shares are held by institutional investors. 2.8% of Tilly’s shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Industria de Diseno Textil beats Tilly’s on 11 of the 15 factors compared between the two stocks.

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.

About Industria de Diseno Textil

Industria de Diseño Textil, S.A. engages in the retail and online distribution of clothing, footwear, accessories, and household products. The company sells its products under the Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home brands. It is also involved in the textile manufacturing, logistics, design, insurance, construction, and real estate businesses, as well as provides financial services. The company operates in Spain, rest of Europe, the Americas, Asia, and internationally. Industria de Diseño Textil, S.A. was founded in 1963 and is headquartered in A Coruña, Spain.