Boot Barn (NYSE:BOOT) vs. Tilly’s (NYSE:TLYS) Head-To-Head Contrast

Tilly’s (NYSE:TLYS) and Boot Barn (NYSE:BOOT) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Risk and Volatility

Tilly’s has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500. Comparatively, Boot Barn has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.

Valuation and Earnings

This table compares Tilly’s and Boot Barn”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tilly’s	$553.59 million	0.23	-$17.45 million	($0.11)	-38.15
Boot Barn	$2.25 billion	2.12	$225.88 million	$7.35	21.41

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

Profitability

This table compares Tilly’s and Boot Barn’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tilly’s	-0.57%	-3.98%	-1.01%
Boot Barn	10.02%	18.15%	9.82%

Analyst Recommendations

This is a summary of current ratings and target prices for Tilly’s and Boot Barn, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tilly’s	1	1	0	1	2.33
Boot Barn	0	2	12	0	2.86

Tilly’s currently has a consensus target price of $5.50, suggesting a potential upside of 31.08%. Boot Barn has a consensus target price of $226.92, suggesting a potential upside of 44.22%. Given Boot Barn’s stronger consensus rating and higher possible upside, analysts clearly believe Boot Barn is more favorable than Tilly’s.

Insider and Institutional Ownership

76.4% of Tilly’s shares are held by institutional investors. 2.8% of Tilly’s shares are held by insiders. Comparatively, 0.7% of Boot Barn shares are held by 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

Boot Barn beats Tilly’s on 12 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 Boot Barn

Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing. The company also provides gifts and home merchandise. The company also sells its products through e-commerce websites, including bootbarn.com; sheplers.com; and countryoutfitter.com. The company was formerly known as WW Top Investment Corporation and changed its name to Boot Barn Holdings, Inc. in June 2014. Boot Barn Holdings, Inc. was founded in 1978 and is based in Irvine, California.