Head to Head Analysis: Industria de Diseno Textil (OTCMKTS:IDEXY) versus Tilly’s (NYSE:TLYS)

Tilly’s (NYSE:TLYS) and Industria de Diseno Textil (OTCMKTS:IDEXY) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Earnings and Valuation

This table compares Tilly’s and Industria de Diseno Textil”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tilly’s	$569.45 million	0.09	-$46.23 million	($1.52)	-1.17
Industria de Diseno Textil	$41.81 billion	4.67	$6.32 billion	$0.52	30.12

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Tilly’s and Industria de Diseno Textil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tilly’s	1	4	0	0	1.80
Industria de Diseno Textil	0	0	1	4	3.80

Tilly’s presently has a consensus price target of $2.25, suggesting a potential upside of 26.83%. Given Tilly’s’ higher possible upside, research analysts plainly believe Tilly’s is more favorable than Industria de Diseno Textil.

Institutional and Insider Ownership

76.4% of Tilly’s shares are held by institutional investors. 2.8% of Tilly’s shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Tilly’s has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Industria de Diseno Textil has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Profitability

This table compares Tilly’s and Industria de Diseno Textil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tilly’s	-8.28%	-48.33%	-12.92%
Industria de Diseno Textil	15.15%	32.32%	16.84%

Summary

Industria de Diseno Textil beats Tilly’s on 11 of the 15 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 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.