Analyzing Tilly's (TLYS) & Buckle (BKE)

Tilly's (NYSE: TLYS) and Buckle (NYSE:BKE) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Dividends

Buckle pays an annual dividend of $1.00 per share and has a dividend yield of 4.6%. Tilly's does not pay a dividend. Buckle pays out 57.8% of its earnings in the form of a dividend. Tilly's has increased its dividend for 3 consecutive years.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Tilly's and Buckle, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tilly's 0 1 2 0 2.67
Buckle 1 0 0 0 1.00

Tilly's presently has a consensus price target of $14.00, indicating a potential downside of 9.56%. Buckle has a consensus price target of $13.00, indicating a potential downside of 40.23%. Given Tilly's’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Tilly's is more favorable than Buckle.

Risk and Volatility

Tilly's has a beta of -0.42, meaning that its share price is 142% less volatile than the S&P 500. Comparatively, Buckle has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Profitability

This table compares Tilly's and Buckle’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tilly's 2.50% 10.23% 6.32%
Buckle 9.17% 19.13% 14.39%

Insider & Institutional Ownership

43.6% of Tilly's shares are owned by institutional investors. Comparatively, 59.8% of Buckle shares are owned by institutional investors. 50.1% of Tilly's shares are owned by company insiders. Comparatively, 41.7% of Buckle shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Tilly's and Buckle’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tilly's $568.95 million 0.78 $11.41 million $0.49 31.59
Buckle $974.87 million 1.09 $97.96 million $1.73 12.57

Buckle has higher revenue and earnings than Tilly's. Buckle is trading at a lower price-to-earnings ratio than Tilly's, indicating that it is currently the more affordable of the two stocks.

Summary

Buckle beats Tilly's on 10 of the 17 factors compared between the two stocks.

Tilly's Company Profile

Tilly’s, Inc. is a destination specialty retailer of casual apparel, footwear and accessories for young men, young women, boys and girls. The Company offers an unparalleled selection of relevant brands, styles, colors, sizes and price points. The Company’s apparel merchandise includes branded, fashion and styles for tops, outerwear, bottoms and dresses. Its accessories merchandise includes backpacks, hats, sunglasses, headphones, handbags, watches, jewelry and others. The Company offers its products through stores and Website. The Company operates over 220 stores in approximately 30 states. The Company’s stores are located in malls, lifestyle centers, power centers, community centers, outlet centers and street-front locations. The Company also operates an e-commerce platform for desktop and mobile. The Company’s third-party brands include AYC, Adidas, Billabong, Converse, Hurley, Nixon, JanSport, LRG and Stance, among others.

Buckle Company Profile

The Buckle, Inc. is a retailer of casual apparel, footwear and accessories for young men and women. As of January 28, 2017, the Company operated 467 retail stores in 44 states throughout the United States under the names Buckle and The Buckle. The Company markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories and footwear. The Company provides customer services, such as free hemming, free gift-wrapping, easy layaways, the Buckle private label credit card, and a guest loyalty program. The Company offers denims from brands, such as Miss Me, Rock Revival, Big Star Vintage, Buffalo Jeans, KanCan, Flying Monkey and Levi’s. Its other brands include Hurley, Billabong, Affliction, American Fighter, Fast & Furious, Oakley, Fox, Puma, Obey, RVCA, Salvage, 7 Diamonds, Nixon, Amuse Society, Free People, White Crow, Corral, Reef, Kustom, Timberland, UGG, TOMS, SAXX, Stance, Lokai, Ray-Ban, and Fossil.

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