Tilly's (NYSE: TLYS) and Saks (NYSE:SKS) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.
Institutional and Insider Ownership
44.1% of Tilly's shares are held by institutional investors. 50.1% of Tilly's shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Tilly's and Saks, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tilly's presently has a consensus target price of $14.67, suggesting a potential upside of 7.84%.
Earnings and Valuation
This table compares Tilly's and Saks’ top-line revenue, earnings per share 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||27.76|
Tilly's has higher revenue and earnings than Saks. Saks is trading at a lower price-to-earnings ratio than Tilly's, indicating that it is currently the more affordable of the two stocks.
This table compares Tilly's and Saks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Tilly's beats Saks on 8 of the 8 factors compared between the two stocks.
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.
Saks Incorporated is a department store retailer. The Company, and its subsidiaries, is engaged in the operation of Saks Fifth Avenue (SFA) stores and SFA e-commerce operations (Saks Direct), as well as Saks Fifth Avenue OFF 5TH (OFF 5TH). The Company is an omni-channel luxury retailer offering an assortment of fashion apparel, shoes, accessories, jewelry, cosmetics, and gifts. SFA stores are principally free-standing stores in exclusive shopping destinations or anchor stores in upscale regional malls. Customers may also purchase SFA products online at saks.com or by catalog. OFF 5TH stores are primarily located in upscale mixed-use and off-price centers and offer luxury apparel, shoes, and accessories. As of January 28, 2012, the Company operated 46 SFA stores with a total of approximately 5.5 million square feet and 60 OFF 5TH stores with a total of approximately 1.7 million square feet. In November 2013, Hudson’s Bay Company acquired Saks Incorporated.
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