Head to Head Review: Citi Trends (NASDAQ:CTRN) vs. Tapestry (NYSE:TPR)

Citi Trends (NASDAQ:CTRN) and Tapestry (NYSE:TPR) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citi Trends	$819.96 million	0.62	$5.21 million	$1.39	43.64
Tapestry	$7.85 billion	3.71	$183.20 million	$3.12	46.18

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

Volatility & Risk

Citi Trends has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500. Comparatively, Tapestry has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.

Institutional and Insider Ownership

90.8% of Tapestry shares are held by institutional investors. 9.6% of Citi Trends shares are held by insiders. Comparatively, 1.3% of Tapestry shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Citi Trends and Tapestry, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citi Trends	0	1	2	0	2.67
Tapestry	0	4	15	2	2.90

Citi Trends presently has a consensus target price of $68.00, suggesting a potential upside of 12.10%. Tapestry has a consensus target price of $165.12, suggesting a potential upside of 14.61%. Given Tapestry’s stronger consensus rating and higher possible upside, analysts plainly believe Tapestry is more favorable than Citi Trends.

Profitability

This table compares Citi Trends and Tapestry’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citi Trends	1.42%	2.09%	0.51%
Tapestry	8.44%	229.70%	22.06%

Summary

Tapestry beats Citi Trends on 13 of the 15 factors compared between the two stocks.

About Citi Trends

Citi Trends, Inc. operates as a value retailer of fashion apparel, accessories, and home goods. The company offers apparel, such as fashion sportswear and footwear for men and ladies, as well as apparel for kids, including newborns, infants, toddlers, boys, and girls; sleepwear, lingerie, and scrubs for ladies; and kids uniforms and accessories. It also provides accessories and beauty products that include handbags, luggage, hats, belts, sunglasses, jewelry, and watches, as well as offers outerwear for men and women. In addition, the company offers home and lifestyle products comprising home products for the bedroom, bathroom, kitchen, and decorative accessories; and food, tech, team sports, health and products, as well as seasonal items, books, and toys. Citi Trends, Inc. provides its products primarily to African American and multicultural families in the United States. The company was formerly known as Allied Fashion, Inc. and changed its name to Citi Trends, Inc. in 2001. Citi Trends, Inc. was founded in 1946 and is headquartered in Savannah, Georgia.

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.