Tandy Leather Factory (NASDAQ:TLF – Get Free Report) and Winmark (NASDAQ:WINA – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.
Profitability
This table compares Tandy Leather Factory and Winmark’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tandy Leather Factory | -2.14% | -3.31% | -1.98% |
| Winmark | 47.09% | -99.47% | 103.54% |
Insider and Institutional Ownership
56.4% of Tandy Leather Factory shares are held by institutional investors. Comparatively, 73.3% of Winmark shares are held by institutional investors. 36.2% of Tandy Leather Factory shares are held by company insiders. Comparatively, 10.4% of Winmark shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tandy Leather Factory | $76.32 million | 0.26 | $9.10 million | ($0.17) | -14.03 |
| Winmark | $86.06 million | 12.40 | $41.65 million | $11.02 | 26.97 |
Winmark has higher revenue and earnings than Tandy Leather Factory. Tandy Leather Factory is trading at a lower price-to-earnings ratio than Winmark, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Tandy Leather Factory has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Winmark has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for Tandy Leather Factory and Winmark, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tandy Leather Factory | 1 | 0 | 0 | 0 | 1.00 |
| Winmark | 0 | 1 | 0 | 0 | 2.00 |
Summary
Winmark beats Tandy Leather Factory on 9 of the 12 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 Winmark
Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.
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.
