Critical Survey: Tilly's (TLYS) & Sequential Brands Group (SQBG)
Tilly's (NYSE: TLYS) and Sequential Brands Group (NASDAQ:SQBG) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares Tilly's and Sequential Brands Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tilly's||$568.95 million||0.69||$11.41 million||$0.49||27.59|
|Sequential Brands Group||$167.46 million||0.86||-$820,000.00||($2.94)||-0.78|
Risk & Volatility
Tilly's has a beta of -0.39, suggesting that its share price is 139% less volatile than the S&P 500. Comparatively, Sequential Brands Group has a beta of -0.27, suggesting that its share price is 127% less volatile than the S&P 500.
This table compares Tilly's and Sequential Brands Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sequential Brands Group||-110.90%||3.92%||1.48%|
This is a breakdown of recent recommendations and price targets for Tilly's and Sequential Brands Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sequential Brands Group||0||4||3||0||2.43|
Tilly's currently has a consensus target price of $14.67, suggesting a potential upside of 8.48%. Sequential Brands Group has a consensus target price of $7.00, suggesting a potential upside of 205.68%. Given Sequential Brands Group’s higher possible upside, analysts clearly believe Sequential Brands Group is more favorable than Tilly's.
Insider and Institutional Ownership
40.6% of Tilly's shares are owned by institutional investors. Comparatively, 47.8% of Sequential Brands Group shares are owned by institutional investors. 50.1% of Tilly's shares are owned by company insiders. Comparatively, 27.3% of Sequential Brands Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Tilly's beats Sequential Brands Group on 9 of the 14 factors compared between the two stocks.
Tilly's Company Profile
Tilly’s, Inc. is a destination specialty retailer of casual apparel, footwear and accessories for young men, young women, boys and girls. The Company offers an unparalleled selection of relevant brands, styles, colors, sizes and price points. The Company’s apparel merchandise includes branded, fashion and styles for tops, outerwear, bottoms and dresses. Its accessories merchandise includes backpacks, hats, sunglasses, headphones, handbags, watches, jewelry and others. The Company offers its products through stores and Website. The Company operates over 220 stores in approximately 30 states. The Company’s stores are located in malls, lifestyle centers, power centers, community centers, outlet centers and street-front locations. The Company also operates an e-commerce platform for desktop and mobile. The Company’s third-party brands include AYC, Adidas, Billabong, Converse, Hurley, Nixon, JanSport, LRG and Stance, among others.
Sequential Brands Group Company Profile
Sequential Brands Group, Inc. owns a portfolio of consumer brands in the fashion, home, athletic and lifestyle categories. The Company’s portfolio of consumer brands includes Martha Stewart, Emeril Lagasse, Jessica Simpson, Joe’s Jeans, William Rast, Ellen Tracy, Revo, AND1 and Avia. The Company’s brands are licensed for a range of product categories, including apparel, footwear, eyewear, fashion accessories and home goods. The Company licenses brands to both wholesale and direct-to-retail licensees. The Company licenses the Martha Stewart brand to various licensees, including retailers, such as Macy’s, The Home Depot, PetSmart and Staples. The Jessica Simpson Collection is a signature lifestyle concept designed in collaboration with Jessica Simpson, which offers various product categories, including footwear, apparel, fragrance, fashion accessories, maternity apparel, girls clothing and a home line. The Avia brand offers running and activewear products.
Receive News & Ratings for Tilly's Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tilly's and related companies with MarketBeat.com's FREE daily email newsletter.