Bath & Body Works (NYSE:BBWI – Get Free Report) and Tandy Leather Factory (NASDAQ:TLF – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Insider & Institutional Ownership
95.1% of Bath & Body Works shares are owned by institutional investors. Comparatively, 56.4% of Tandy Leather Factory shares are owned by institutional investors. 0.3% of Bath & Body Works shares are owned by company insiders. Comparatively, 36.2% of Tandy Leather Factory shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Bath & Body Works has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Tandy Leather Factory has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Bath & Body Works and Tandy Leather Factory, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bath & Body Works | 1 | 15 | 4 | 0 | 2.15 |
| Tandy Leather Factory | 1 | 0 | 0 | 0 | 1.00 |
Bath & Body Works presently has a consensus target price of $22.20, indicating a potential downside of 2.55%. Given Bath & Body Works’ stronger consensus rating and higher possible upside, research analysts plainly believe Bath & Body Works is more favorable than Tandy Leather Factory.
Profitability
This table compares Bath & Body Works and Tandy Leather Factory’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bath & Body Works | 10.83% | -53.48% | 13.40% |
| Tandy Leather Factory | -2.14% | -3.31% | -1.98% |
Earnings and Valuation
This table compares Bath & Body Works and Tandy Leather Factory”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bath & Body Works | $7.21 billion | 0.64 | $649.00 million | $3.84 | 5.93 |
| Tandy Leather Factory | $77.21 million | 0.23 | $9.10 million | ($0.17) | -12.94 |
Bath & Body Works has higher revenue and earnings than Tandy Leather Factory. Tandy Leather Factory is trading at a lower price-to-earnings ratio than Bath & Body Works, indicating that it is currently the more affordable of the two stocks.
Summary
Bath & Body Works beats Tandy Leather Factory on 12 of the 14 factors compared between the two stocks.
About Bath & Body Works
Bath & Body Works, Inc. is a specialty retailers and home to America’s Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. The company was founded by Leslie Herbert Wexner in 1963 and is headquartered in Columbus, OH.
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.
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