Industria de Diseno Textil (OTCMKTS:IDEXY) & Tapestry (NYSE:TPR) Critical Survey

Tapestry (NYSE:TPR) and Industria de Diseno Textil (OTCMKTS:IDEXY) are both large-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Institutional & Insider Ownership

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Tapestry and Industria de Diseno Textil, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tapestry	0	4	15	2	2.90
Industria de Diseno Textil	0	1	1	3	3.40

Tapestry currently has a consensus target price of $167.65, suggesting a potential upside of 14.64%. Given Tapestry’s higher possible upside, equities analysts clearly believe Tapestry is more favorable than Industria de Diseno Textil.

Valuation and Earnings

This table compares Tapestry and Industria de Diseno Textil”s top-line revenue, earnings per share (EPS) 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	46.87
Industria de Diseno Textil	$45.09 billion	4.40	$7.11 billion	$0.59	26.97

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

Profitability

This table compares Tapestry and Industria de Diseno Textil’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%
Industria de Diseno Textil	15.60%	33.65%	17.67%

Risk and Volatility

Tapestry has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, Industria de Diseno Textil has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Dividends

Tapestry pays an annual dividend of $1.60 per share and has a dividend yield of 1.1%. Industria de Diseno Textil pays an annual dividend of $0.31 per share and has a dividend yield of 1.9%. Tapestry pays out 51.3% of its earnings in the form of a dividend. Industria de Diseno Textil pays out 52.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Tapestry has raised its dividend for 3 consecutive years.

Summary

Tapestry beats Industria de Diseno Textil on 11 of the 18 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 Industria de Diseno Textil

Industria de Diseño Textil, S.A. engages in the retail and online distribution of clothing, footwear, accessories, and household products. The company sells its products under the Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home brands. It is also involved in the textile manufacturing, logistics, design, insurance, construction, and real estate businesses, as well as provides financial services. The company operates in Spain, rest of Europe, the Americas, Asia, and internationally. Industria de Diseño Textil, S.A. was founded in 1963 and is headquartered in A Coruña, Spain.