Tuesday Morning (TUES) versus Tesco (TSCDY) Head to Head Analysis

Tuesday Morning (NASDAQ:TUES) and Tesco (OTCMKTS:TSCDY) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Dividends

Tesco pays an annual dividend of $0.13 per share and has a dividend yield of 1.7%. Tuesday Morning does not pay a dividend. Tesco pays out 28.3% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Tuesday Morning and Tesco’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tuesday Morning $1.01 billion 0.11 -$21.93 million $0.50 4.70
Tesco $74.07 billion 0.28 $1.58 billion $0.46 16.38

Tesco has higher revenue and earnings than Tuesday Morning. Tuesday Morning is trading at a lower price-to-earnings ratio than Tesco, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tuesday Morning and Tesco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tuesday Morning -1.75% -9.62% -4.54%
Tesco N/A N/A N/A

Analyst Ratings

This is a breakdown of recent ratings and price targets for Tuesday Morning and Tesco, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tuesday Morning 0 1 0 0 2.00
Tesco 0 2 3 0 2.60

Tuesday Morning currently has a consensus target price of $4.00, indicating a potential upside of 70.21%. Given Tuesday Morning’s higher probable upside, equities research analysts clearly believe Tuesday Morning is more favorable than Tesco.

Insider and Institutional Ownership

73.8% of Tuesday Morning shares are held by institutional investors. Comparatively, 0.1% of Tesco shares are held by institutional investors. 7.0% of Tuesday Morning shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Tuesday Morning has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Tesco has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.

Summary

Tesco beats Tuesday Morning on 10 of the 16 factors compared between the two stocks.

About Tuesday Morning

Tuesday Morning Corporation operates as an off-price retailer in the United States. The company offers various products, such as upscale home textiles, home furnishings, housewares, gourmet food products, toys, and seasonal décor products. As of September 30, 2018, it operated approximately 719 stores in 40 states. Tuesday Morning Corporation was founded in 1974 and is headquartered in Dallas, Texas.

About Tesco

Tesco PLC, together with its subsidiaries, operates as a grocery retailer. The company also provides retail banking and insurance services. It has operations in the United Kingdom, Ireland, the Czech Republic, Hungary, Poland, Slovakia, Malaysia, Thailand, and internationally. The company serves its customers through 6,809 stores, as well as online. Tesco PLC was founded in 1919 and is based in Welwyn Garden City, the United Kingdom.

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