Li Ning (OTCMKTS:LNNGY) and Tilly’s (NYSE:TLYS) Financial Comparison

Tilly’s (NYSE:TLYS) and Li Ning (OTCMKTS:LNNGY) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Insider and Institutional Ownership

76.4% of Tilly’s shares are held by institutional investors. 2.8% of Tilly’s shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Tilly’s and Li Ning”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tilly’s	$569.45 million	0.08	-$46.23 million	($1.14)	-1.24
Li Ning	$3.99 billion	1.89	$419.10 million	N/A	N/A

Li Ning has higher revenue and earnings than Tilly’s.

Risk and Volatility

Tilly’s has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Li Ning has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Profitability

This table compares Tilly’s and Li Ning’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tilly’s	-6.24%	-39.59%	-10.17%
Li Ning	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings for Tilly’s and Li Ning, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tilly’s	1	3	0	0	1.75
Li Ning	1	0	0	0	1.00

Tilly’s currently has a consensus target price of $2.25, indicating a potential upside of 58.67%. Given Tilly’s’ stronger consensus rating and higher probable upside, analysts clearly believe Tilly’s is more favorable than Li Ning.

Summary

Li Ning beats Tilly’s on 6 of the 11 factors compared between the two stocks.

About Tilly’s

Tilly’s, Inc. engages in the retail of casual apparel, footwear, and accessories. Its stores are located in retail centers, including malls, lifestyle centers, power centers, community centers, outlet centers, and street-front locations. The company was founded by Hezy Shaked and Tilly Levine in 1982 and is headquartered in Irvine, CA.

About Li Ning

Li Ning Company Limited, a sports brand company, engages in the research and development, design, manufacture, marketing, distribution, and retail of sporting goods in the People’s Republic of China. The company offers sporting goods, including professional and leisure footwear, apparel, equipment, and accessories under the LI-NING brand. It also develops, manufactures, markets, distributes, and/or sells outdoor sports products under the AIGLE brand; table tennis products under the Double Happiness brand name; fashionable fitness products for dance and yoga under the Danskin brand; and badminton products under the Kason brand name. The company also provides brand licensing, administrative, and property management services. It operates conventional stores, flagship stores, China LI-NING stores, LI-NING 1990 stores, factory outlets, and multi-brand stores under the LI-NING brand. The company was founded in 1990 and is headquartered in Beijing, the People’s Republic of China.