Destination XL Group (NASDAQ:DXLG – Get Free Report) and Tandy Leather Factory (NASDAQ:TLF – Get Free Report) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.
Profitability
This table compares Destination XL Group and Tandy Leather Factory’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Destination XL Group | -8.25% | -8.96% | -3.03% |
| Tandy Leather Factory | -2.94% | -4.31% | -2.74% |
Risk & Volatility
Destination XL Group has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Tandy Leather Factory has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Destination XL Group | 1 | 0 | 1 | 0 | 2.00 |
| Tandy Leather Factory | 1 | 0 | 0 | 0 | 1.00 |
Destination XL Group currently has a consensus target price of $1.50, indicating a potential upside of 127.27%. Given Destination XL Group’s stronger consensus rating and higher possible upside, analysts plainly believe Destination XL Group is more favorable than Tandy Leather Factory.
Earnings & Valuation
This table compares Destination XL Group and Tandy Leather Factory”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Destination XL Group | $435.02 million | 0.08 | -$35.91 million | ($0.66) | -1.00 |
| Tandy Leather Factory | $76.32 million | 0.25 | $9.10 million | $1.20 | 1.93 |
Tandy Leather Factory has lower revenue, but higher earnings than Destination XL Group. Destination XL Group is trading at a lower price-to-earnings ratio than Tandy Leather Factory, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
73.5% of Destination XL Group shares are held by institutional investors. Comparatively, 56.4% of Tandy Leather Factory shares are held by institutional investors. 14.3% of Destination XL Group shares are held by company insiders. Comparatively, 34.1% of Tandy Leather Factory shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
About Destination XL Group
Destination XL Group, Inc., together with its subsidiaries, operates as a specialty retailer of big and tall men’s clothing and shoes in the United States. The company’s stores offer sportswear and dresswear; fashion-neutral items, including jeans, casual pants, T-shirts, polo shirts, dress shirts, and suit separates; and casual clothing. It also provides vintage-screen T-shirts and wovens under various private labels. The company offers its products under the trade names of Destination XL, DXL, DXL Men’s Apparel, DXL outlets, Casual Male XL, and Casual Male XL outlets. The company was formerly known as Casual Male Retail Group, Inc. and changed its name to Destination XL Group, Inc. in February 2013. Destination XL Group, Inc. was incorporated in 1976 and is headquartered in Canton, Massachusetts.
About Tandy Leather Factory
Tandy Leather Factory, Inc. engages in the distribution of leather and related products. It offers leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. It operates through North America and International geographical segments. The North America geographical segment consists of 115 stores, which offer a broad selection of products combined with leathercraft expertise in a one-stop shop. The International geographical segment comprises of similar to North America segment but generally located in light industrial areas. The company was founded by J. Wray Thompson, Sr. and Ronald C. Morgan in 1980 and is headquartered in Fort Worth, TX.
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