Stitch Fix (NASDAQ:SFIX – Get Free Report) and Tandy Leather Factory (NASDAQ:TLF – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Earnings & Valuation
This table compares Stitch Fix and Tandy Leather Factory”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stitch Fix | $1.27 billion | 0.34 | -$28.74 million | ($0.13) | -24.00 |
| Tandy Leather Factory | $76.32 million | 0.24 | $9.10 million | $1.20 | 1.92 |
Analyst Recommendations
This is a summary of recent ratings and price targets for Stitch Fix and Tandy Leather Factory, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stitch Fix | 1 | 4 | 0 | 0 | 1.80 |
| Tandy Leather Factory | 1 | 0 | 0 | 0 | 1.00 |
Stitch Fix presently has a consensus price target of $5.00, suggesting a potential upside of 60.26%. Given Stitch Fix’s stronger consensus rating and higher probable upside, equities analysts plainly believe Stitch Fix is more favorable than Tandy Leather Factory.
Volatility and Risk
Stitch Fix has a beta of 2.33, indicating that its stock price is 133% more volatile than the S&P 500. Comparatively, Tandy Leather Factory has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.
Profitability
This table compares Stitch Fix and Tandy Leather Factory’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stitch Fix | -1.89% | -12.23% | -4.99% |
| Tandy Leather Factory | 13.36% | -13.60% | -9.19% |
Insider & Institutional Ownership
71.0% of Stitch Fix shares are owned by institutional investors. Comparatively, 56.4% of Tandy Leather Factory shares are owned by institutional investors. 16.1% of Stitch Fix shares are owned by company insiders. Comparatively, 59.9% of Tandy Leather Factory shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Stitch Fix beats Tandy Leather Factory on 8 of the 13 factors compared between the two stocks.
About Stitch Fix
Stitch Fix, Inc. sells a range of apparel, shoes, and accessories for men, women, and kids through its website and mobile application in the United States and the United Kingdom. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags under the Stitch Fix brand. The company was formerly known as rack habit inc. and changed its name to Stitch Fix, Inc. in October 2011. Stitch Fix, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.
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.
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