Tandy Leather Factory (NASDAQ:TLF – Get Free Report) and Urban Outfitters (NASDAQ:URBN – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.
Risk and Volatility
Tandy Leather Factory has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Urban Outfitters has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Tandy Leather Factory and Urban Outfitters, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tandy Leather Factory | 1 | 0 | 0 | 0 | 1.00 |
| Urban Outfitters | 1 | 8 | 8 | 0 | 2.41 |
Valuation and Earnings
This table compares Tandy Leather Factory and Urban Outfitters”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tandy Leather Factory | $76.32 million | 0.25 | $9.10 million | $1.20 | 1.93 |
| Urban Outfitters | $6.17 billion | 0.92 | $464.92 million | $5.07 | 13.10 |
Urban Outfitters has higher revenue and earnings than Tandy Leather Factory. Tandy Leather Factory is trading at a lower price-to-earnings ratio than Urban Outfitters, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
56.4% of Tandy Leather Factory shares are owned by institutional investors. Comparatively, 77.6% of Urban Outfitters shares are owned by institutional investors. 34.1% of Tandy Leather Factory shares are owned by insiders. Comparatively, 32.1% of Urban Outfitters shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Tandy Leather Factory and Urban Outfitters’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tandy Leather Factory | -2.94% | -4.31% | -2.74% |
| Urban Outfitters | 7.54% | 18.96% | 10.46% |
Summary
Urban Outfitters beats Tandy Leather Factory on 13 of the 14 factors compared between the two stocks.
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.
About Urban Outfitters
Urban Outfitters, Inc. engages in the retail and wholesale of general consumer products. The company operates through three segments: Retail, Wholesale, and Nuuly. It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's apparel, accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty and wellness products for women aged 28 to 45. The company also operates Terrain stores that provide lifestyle home products, garden and outdoor living products, antiques, live plants, flowers, wellness products, and accessories. In addition, it operates Free People retail stores, which offer casual women's apparel, intimates, activewear, shoes, accessories, home products, gifts, and beauty and wellness products for young women aged 25 to 30; and restaurants, as well as women's apparel subscription rental service under the Nuuly brand. Further, the company is involved in the wholesale of young women's contemporary casual apparel, intimates, activewear, and shoes under the Free People brand; and apparel collections under the Urban Outfitters brand. The company serves its customers directly through retail stores, websites, mobile applications, catalogs and customer contact centers, franchisee-owned stores, and department and specialty stores, as well as social media and third-party digital platforms. Urban Outfitters, Inc. was founded in 1970 and is based in Philadelphia, Pennsylvania.
Receive News & Ratings for Tandy Leather Factory Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tandy Leather Factory and related companies with MarketBeat.com's FREE daily email newsletter.
