Tapestry (NYSE:TPR) and Levi Strauss & Co. (NYSE:LEVI) Financial Contrast

Tapestry (NYSE:TPR) and Levi Strauss & Co. (NYSE:LEVI) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Risk and Volatility

Tapestry has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Levi Strauss & Co. has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Profitability

This table compares Tapestry and Levi Strauss & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tapestry	6.95%	157.98%	19.48%
Levi Strauss & Co.	9.20%	25.08%	8.19%

Institutional and Insider Ownership

90.8% of Tapestry shares are owned by institutional investors. Comparatively, 69.1% of Levi Strauss & Co. shares are owned by institutional investors. 1.3% of Tapestry shares are owned by company insiders. Comparatively, 1.3% of Levi Strauss & Co. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Tapestry and Levi Strauss & Co.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tapestry	$7.51 billion	4.23	$183.20 million	$2.42	64.92
Levi Strauss & Co.	$6.28 billion	1.42	$578.10 million	$1.46	15.66

Levi Strauss & Co. has lower revenue, but higher earnings than Tapestry. Levi Strauss & Co. is trading at a lower price-to-earnings ratio than Tapestry, indicating that it is currently the more affordable of the two stocks.

Dividends

Tapestry pays an annual dividend of $1.60 per share and has a dividend yield of 1.0%. Levi Strauss & Co. pays an annual dividend of $0.56 per share and has a dividend yield of 2.4%. Tapestry pays out 66.1% of its earnings in the form of a dividend. Levi Strauss & Co. pays out 38.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Tapestry has increased its dividend for 3 consecutive years and Levi Strauss & Co. has increased its dividend for 4 consecutive years. Levi Strauss & Co. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Tapestry and Levi Strauss & Co., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tapestry	0	5	13	2	2.85
Levi Strauss & Co.	0	4	11	0	2.73

Tapestry currently has a consensus target price of $147.00, suggesting a potential downside of 6.43%. Levi Strauss & Co. has a consensus target price of $26.69, suggesting a potential upside of 16.74%. Given Levi Strauss & Co.’s higher possible upside, analysts plainly believe Levi Strauss & Co. is more favorable than Tapestry.

Summary

Tapestry beats Levi Strauss & Co. on 12 of the 18 factors compared between the two stocks.

About Tapestry

Tapestry, Inc. provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women’s handbags; and women’s accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms. The company also provides men products, which includes bag collections, such as business cases, computer bags, messenger-style bags, backpacks, and totes; small leather goods including wallets, card cases, travel organizers, and belts; and footwear, watches, fragrances, sunglasses, novelty accessories, and ready-to-wear items. In addition, it offers other products including women’s footwear and fragrances; eyewear and sunglasses; and jewelry, such as bracelets, necklaces, rings, and earrings, watches, and other women’s seasonal lifestyle apparel collections, including outerwear, ready-to-wear and cold weather accessories, such as gloves, scarves, and hats. Further, the company provides kids items, housewares, and home accessories, such as fashion bedding and tableware, stationery, and gifts. It offers its products through e-commerce sites and concession shop-in-shops, wholesale, and third-party distributors under the Coach, Kate Spade, and Stuart Weitzman brand names. The company was formerly known as Coach, Inc. and changed its name to Tapestry, Inc. in October 2017. Tapestry, Inc. was founded in 1941 and is headquartered in New York, New York.

About Levi Strauss & Co.

Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.