Tandy Leather Factory (NASDAQ:TLF) and Next (OTCMKTS:NXGPY) Critical Review

Next (OTCMKTS:NXGPY) and Tandy Leather Factory (NASDAQ:TLF) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Volatility & Risk

Next has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Tandy Leather Factory has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Institutional & Insider Ownership

56.4% of Tandy Leather Factory shares are held by institutional investors. 36.2% of Tandy Leather Factory shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Next and Tandy Leather Factory, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Next	0	2	0	0	2.00
Tandy Leather Factory	1	0	0	0	1.00

Profitability

This table compares Next and Tandy Leather Factory’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Next	N/A	N/A	N/A
Tandy Leather Factory	-2.94%	-4.31%	-2.74%

Earnings and Valuation

This table compares Next and Tandy Leather Factory”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Next	$9.16 billion	2.59	$577.17 million	N/A	N/A
Tandy Leather Factory	$76.32 million	0.25	$9.10 million	($0.24)	-9.96

Next has higher revenue and earnings than Tandy Leather Factory.

Summary

Next beats Tandy Leather Factory on 8 of the 10 factors compared between the two stocks.

About Next

NEXT plc engages in the retail of clothing, beauty, footwear, and home products in the United Kingdom, rest of Europe, the Middle East, Asia, and internationally. The company operates through NEXT Retail; NEXT Online; NEXT Finance; Total Platform; Property Management; and Franchise, Sourcing, and other segments. It offers consumer credit; NEXT branded products; and women’s, men’s, children’s, clothing, homeware, and beauty products under the LABEL brand, as well as other third-party brands. The company also provides property management services, including holding and lease of properties; operates call centers; and websites, marketing, warehousing, and distribution networks to third-party brands. It operates through retail stores, online retail platforms, and franchise stores. The company was formerly known as J Hepworth & Son and changed its name to NEXT plc in 1986. NEXT plc was founded in 1864 and is headquartered in Enderby, the United Kingdom.

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.