Financial Analysis: The Talbots (TLB) and Chico’s FAS (CHS)

The Talbots (NYSE: TLB) and Chico’s FAS (NYSE:CHS) are both women’s apparel retailers companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Earnings & Valuation

This table compares The Talbots and Chico’s FAS’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
The Talbots N/A N/A N/A ($1.61) N/A
Chico’s FAS $2.48 billion 0.42 $91.22 million $0.72 11.14

Chico’s FAS has higher revenue and earnings than The Talbots. The Talbots is trading at a lower price-to-earnings ratio than Chico’s FAS, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares The Talbots and Chico’s FAS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Talbots N/A N/A N/A
Chico’s FAS 3.94% 15.57% 8.72%

Dividends

Chico’s FAS pays an annual dividend of $0.33 per share and has a dividend yield of 4.1%. The Talbots does not pay a dividend. Chico’s FAS pays out 45.8% of its earnings in the form of a dividend. The Talbots has increased its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of current ratings and target prices for The Talbots and Chico’s FAS, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Talbots 0 0 0 0 N/A
Chico’s FAS 1 9 5 0 2.27

Chico’s FAS has a consensus target price of $11.83, suggesting a potential upside of 47.55%.

Summary

Chico’s FAS beats The Talbots on 7 of the 9 factors compared between the two stocks.

About The Talbots

The Talbots Inc. is a United States-based company, which operates as a retailer and direct marketer of women’s clothing, shoes and accessories. The Company offers blazer, trench, white shirt, ballet flat and pearls. It sells its products through different outlets. It also provides e-commerce service and its website offers MyTalbots, which allows customers to register for benefits and customize their online shopping experience; Style by Design appointment shopping; Pearls of Wisdom, offering fashion advice and styling ideas; and a Find in Store feature, which enables customers to locate and reserve merchandise in any Talbots store.

About Chico’s FAS

Chico’s FAS, Inc. is an omni-channel specialty retailer of women’s private branded, casual-to-dressy clothing, intimates and accessories, operating under the Chico’s, White House Black Market (WHBM) and Soma brand names. The Company is also engaged in the sale of merchandise in its domestic and international retail stores. The Chico’s brand sells private branded clothing focusing on women 45 and older. Chico’s apparel includes the Black Label, Zenergy and Travelers collections. The WHBM brand sells private branded clothing focusing on women 35 and older. WHBM sells clothing and accessory items, including everyday basics, wear-to-work, denim and occasion. It offers black and white color palette. The accessories at WHBM include shoes, belts, scarves, handbags and jewelry. The Soma brand sells private branded lingerie, sleepwear, loungewear, activewear and beauty products focusing on women 35 and older. The lingerie category includes bras, panties, shapewear and swimwear.

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