Tapestry (NYSE:TPR) & Canada Goose (NYSE:GOOS) Critical Contrast

Tapestry (NYSE:TPR) and Canada Goose (NYSE:GOOS) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Earnings and Valuation

This table compares Tapestry and Canada Goose”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tapestry	$7.01 billion	3.24	$183.20 million	$0.63	174.23
Canada Goose	$969.08 million	1.39	$68.13 million	$0.34	40.88

Tapestry has higher revenue and earnings than Canada Goose. Canada Goose 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 Canada Goose’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tapestry	2.61%	68.02%	13.01%
Canada Goose	3.48%	19.85%	5.79%

Risk & Volatility

Tapestry has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, Canada Goose has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Tapestry and Canada Goose, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tapestry	0	5	18	0	2.78
Canada Goose	2	3	4	1	2.40

Tapestry presently has a consensus target price of $115.60, indicating a potential upside of 5.31%. Canada Goose has a consensus target price of $15.00, indicating a potential upside of 7.93%. Given Canada Goose’s higher probable upside, analysts clearly believe Canada Goose is more favorable than Tapestry.

Institutional & Insider Ownership

90.8% of Tapestry shares are held by institutional investors. Comparatively, 83.6% of Canada Goose shares are held by institutional investors. 1.3% of Tapestry shares are held by company insiders. Comparatively, 0.5% of Canada Goose shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Tapestry beats Canada Goose on 11 of the 15 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 Canada Goose

Canada Goose Holdings Inc., together with its subsidiaries, designs, manufactures, and sells performance luxury apparel for men, women, youth, children, and babies in Canada, the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through three segments: Direct-to-Consumer, Wholesale, and Other. It offers parkas, lightweight down jackets, rainwear, windwear, apparel, fleece, footwear, and accessories for fall, winter, and spring seasons. The company operates through national e-commerce markets and directly operated retail stores. Canada Goose Holdings Inc. was founded in 1957 and is headquartered in Toronto, Canada.