Financial Contrast: Tandy Leather Factory (NASDAQ:TLF) vs. a.k.a. Brands (NYSE:AKA)

a.k.a. Brands (NYSE:AKA) and Tandy Leather Factory (NASDAQ:TLF) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Insider and Institutional Ownership

55.4% of a.k.a. Brands shares are owned by institutional investors. Comparatively, 56.4% of Tandy Leather Factory shares are owned by institutional investors. 18.2% of a.k.a. Brands shares are owned by insiders. Comparatively, 59.9% of Tandy Leather Factory shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares a.k.a. Brands 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
a.k.a. Brands	$600.21 million	0.21	-$31.43 million	($2.93)	-4.00
Tandy Leather Factory	$76.32 million	0.25	$9.10 million	$1.20	1.98

Tandy Leather Factory has lower revenue, but higher earnings than a.k.a. Brands. a.k.a. Brands is trading at a lower price-to-earnings ratio than Tandy Leather Factory, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

a.k.a. Brands has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Tandy Leather Factory has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Profitability

This table compares a.k.a. Brands and Tandy Leather Factory’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
a.k.a. Brands	-5.24%	-23.52%	-6.31%
Tandy Leather Factory	-2.94%	-4.15%	-2.74%

Analyst Ratings

This is a summary of recent ratings for a.k.a. Brands and Tandy Leather Factory, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
a.k.a. Brands	1	2	1	0	2.00
Tandy Leather Factory	1	0	0	0	1.00

a.k.a. Brands presently has a consensus price target of $19.00, indicating a potential upside of 61.98%. Given a.k.a. Brands’ stronger consensus rating and higher possible upside, equities analysts clearly believe a.k.a. Brands is more favorable than Tandy Leather Factory.

Summary

Tandy Leather Factory beats a.k.a. Brands on 8 of the 14 factors compared between the two stocks.

About a.k.a. Brands

a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. The company offers streetwear apparel, dresses, tops, bottoms, shoes, headwear, and accessories through its online stores under the Princess Polly, Petal & Pup, Culture Kings, and mnml brands. It also operates physical stores under the Culture Kings brand. The company was founded in 2018 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.