Tapestry (NYSE:TPR) & Deckers Outdoor (NYSE:DECK) Critical Survey

Tapestry (NYSE:TPR) and Deckers Outdoor (NYSE:DECK) are both large-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Earnings & Valuation

This table compares Tapestry and Deckers Outdoor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tapestry	$7.01 billion	4.21	$183.20 million	$3.12	46.77
Deckers Outdoor	$5.47 billion	2.69	$1.02 billion	$7.04	15.04

Deckers Outdoor has lower revenue, but higher earnings than Tapestry. Deckers Outdoor is trading at a lower price-to-earnings ratio than Tapestry, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Tapestry has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Deckers Outdoor has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Insider & Institutional Ownership

90.8% of Tapestry shares are held by institutional investors. Comparatively, 97.8% of Deckers Outdoor shares are held by institutional investors. 1.3% of Tapestry shares are held by company insiders. Comparatively, 0.4% of Deckers Outdoor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Tapestry and Deckers Outdoor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tapestry	8.44%	229.70%	22.06%
Deckers Outdoor	18.90%	41.19%	26.84%

Analyst Ratings

This is a breakdown of recent recommendations for Tapestry and Deckers Outdoor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tapestry	0	4	15	2	2.90
Deckers Outdoor	2	13	9	0	2.29

Tapestry currently has a consensus target price of $165.12, indicating a potential upside of 13.15%. Deckers Outdoor has a consensus target price of $121.11, indicating a potential upside of 14.36%. Given Deckers Outdoor’s higher possible upside, analysts plainly believe Deckers Outdoor is more favorable than Tapestry.

Summary

Tapestry beats Deckers Outdoor on 9 of the 15 factors compared between the two stocks.

About Tapestry

Tapestry, Inc. provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women’s handbags; and women’s accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms. The company also provides men products, which includes bag collections, such as business cases, computer bags, messenger-style bags, backpacks, and totes; small leather goods including wallets, card cases, travel organizers, and belts; and footwear, watches, fragrances, sunglasses, novelty accessories, and ready-to-wear items. In addition, it offers other products including women’s footwear and fragrances; eyewear and sunglasses; and jewelry, such as bracelets, necklaces, rings, and earrings, watches, and other women’s seasonal lifestyle apparel collections, including outerwear, ready-to-wear and cold weather accessories, such as gloves, scarves, and hats. Further, the company provides kids items, housewares, and home accessories, such as fashion bedding and tableware, stationery, and gifts. It offers its products through e-commerce sites and concession shop-in-shops, wholesale, and third-party distributors under the Coach, Kate Spade, and Stuart Weitzman brand names. The company was formerly known as Coach, Inc. and changed its name to Tapestry, Inc. in October 2017. Tapestry, Inc. was founded in 1941 and is headquartered in New York, New York.

About Deckers Outdoor

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. The company offers premium footwear, apparel, and accessories under the UGG brand name; footwear, apparel, and accessories for ultra-runners and athletes under the HOKA brand name; and sandals, shoes, and boots under the Teva brand name. It also provides relaxed casual shoes and sandals under the Sanuk brand name; casual footwear fashion line under the Koolaburra brand name; and footwear under the AHNU brand name. The company sells its products through domestic and international retailers; international distributors; and directly to its consumers through its direct-to-consumer business, which includes e-commerce websites and retail stores. Deckers Outdoor Corporation was founded in 1973 and is headquartered in Goleta, California.