Kontoor Brands (NYSE:KTB) vs. Tandy Brands Accessories (OTCMKTS:TBACQ) Critical Analysis

Tandy Brands Accessories (OTCMKTS:TBACQ) and Kontoor Brands (NYSE:KTB) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Tandy Brands Accessories and Kontoor Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tandy Brands Accessories	0	0	0	0	0.00
Kontoor Brands	1	3	6	1	2.64

Kontoor Brands has a consensus target price of $91.33, indicating a potential upside of 30.33%. Given Kontoor Brands’ stronger consensus rating and higher possible upside, analysts clearly believe Kontoor Brands is more favorable than Tandy Brands Accessories.

Profitability

This table compares Tandy Brands Accessories and Kontoor Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tandy Brands Accessories	N/A	N/A	N/A
Kontoor Brands	8.30%	60.17%	12.31%

Institutional and Insider Ownership

93.1% of Kontoor Brands shares are held by institutional investors. 6.6% of Tandy Brands Accessories shares are held by insiders. Comparatively, 1.8% of Kontoor Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Tandy Brands Accessories and Kontoor Brands”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tandy Brands Accessories	N/A	N/A	N/A	N/A	N/A
Kontoor Brands	$3.15 billion	1.23	$227.45 million	$4.94	14.19

Kontoor Brands has higher revenue and earnings than Tandy Brands Accessories.

Summary

Kontoor Brands beats Tandy Brands Accessories on 9 of the 10 factors compared between the two stocks.

About Tandy Brands Accessories

Tandy Brands Accessories, Inc. engages in the design and marketing of accessories. Its products include belts, gifts, small leather goods, and bags for men, women, and children. The company was founded in November 1990 and is headquartered in Dallas, TX.

About Kontoor Brands

Kontoor Brands, Inc., a lifestyle apparel company, designs, produces, procures, markets, distributes, and licenses denim, apparel, footwear, and accessories, primarily under the Wrangler and Lee brands. The company operates through two segments: Wrangler and Lee. It licenses and sells apparel under the Rock & Republic brand name. The company sells its products primarily through mass merchants, specialty stores, mid-tier and traditional department stores, company-operated stores, and online. It operates in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions. Kontoor Brands, Inc. was incorporated in 2018 and is headquartered in Greensboro, North Carolina.