Contrasting Tilly’s (TLYS) and Lands’ End (LE)

Tilly’s (NYSE: TLYS) and Lands’ End (NASDAQ:LE) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Earnings & Valuation

This table compares Tilly’s and Lands’ End’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tilly’s $572.08 million 0.63 $50.50 million $0.41 30.32
Lands’ End $1.34 billion 0.30 $39.65 million ($3.55) -3.54

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

Insider & Institutional Ownership

40.3% of Tilly’s shares are owned by institutional investors. Comparatively, 60.5% of Lands’ End shares are owned by institutional investors. 50.1% of Tilly’s shares are owned by company insiders. Comparatively, 0.5% of Lands’ End shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Tilly’s and Lands’ End, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tilly’s 0 2 2 0 2.50
Lands’ End 0 1 0 0 2.00

Tilly’s currently has a consensus price target of $11.50, suggesting a potential downside of 7.48%. Lands’ End has a consensus price target of $15.00, suggesting a potential upside of 19.52%. Given Lands’ End’s higher possible upside, analysts plainly believe Lands’ End is more favorable than Tilly’s.

Profitability

This table compares Tilly’s and Lands’ End’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%
Lands’ End -8.48% -0.73% -0.19%

Volatility & Risk

Tilly’s has a beta of -0.45, indicating that its stock price is 145% less volatile than the S&P 500. Comparatively, Lands’ End has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.

Summary

Tilly’s beats Lands’ End on 9 of the 13 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 Lands’ End

Lands’ End, Inc. (Lands’ End) is a multi-channel retailer of casual clothing, accessories and footwear, as well as home products. The Company operates through two segments: Direct and Retail. The Company offers products through catalogs, online at www.landsend.com. The Direct segment sells products through the Company’s e-commerce Websites, international Websites and direct mail catalogs. The Retail segment sells products and services through Lands’ End Shops at Sears across the United States, the Company’s standalone Lands’ End Inlet stores and international shop-in-shops. The Company’s product categories include Apparel and Non-apparel. The Non-apparel category offers accessories, footwear and home goods. The Company provides embroidery, monogramming, gift wrapping, shipping and other services. In addition, the Company offers sheets and pillowcases, duvet covers and comforters, blankets and throws, mattress pads, towels, rugs and mats, school uniforms and shower curtains.

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