Urban Outfitters (NASDAQ:URBN – Get Free Report) and Tandy Leather Factory (NASDAQ:TLF – Get Free Report) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.
Earnings and Valuation
This table compares Urban Outfitters and Tandy Leather Factory”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Urban Outfitters | $6.17 billion | 0.96 | $464.92 million | $5.07 | 13.60 |
| Tandy Leather Factory | $76.32 million | 0.25 | $9.10 million | ($0.24) | -9.79 |
Risk & Volatility
Urban Outfitters has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Tandy Leather Factory has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Urban Outfitters and Tandy Leather Factory, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Urban Outfitters | 1 | 8 | 8 | 0 | 2.41 |
| Tandy Leather Factory | 1 | 0 | 0 | 0 | 1.00 |
Urban Outfitters presently has a consensus price target of $86.25, indicating a potential upside of 25.09%. Given Urban Outfitters’ stronger consensus rating and higher probable upside, analysts clearly believe Urban Outfitters is more favorable than Tandy Leather Factory.
Insider and Institutional Ownership
77.6% of Urban Outfitters shares are held by institutional investors. Comparatively, 56.4% of Tandy Leather Factory shares are held by institutional investors. 32.1% of Urban Outfitters shares are held by company insiders. Comparatively, 34.1% of Tandy Leather Factory shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Urban Outfitters and Tandy Leather Factory’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Urban Outfitters | 7.54% | 18.96% | 10.46% |
| Tandy Leather Factory | -2.94% | -4.31% | -2.74% |
Summary
Urban Outfitters beats Tandy Leather Factory on 13 of the 14 factors compared between the two stocks.
About Urban Outfitters
Urban Outfitters, Inc. engages in the retail and wholesale of general consumer products. The company operates through three segments: Retail, Wholesale, and Nuuly. It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's apparel, accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty and wellness products for women aged 28 to 45. The company also operates Terrain stores that provide lifestyle home products, garden and outdoor living products, antiques, live plants, flowers, wellness products, and accessories. In addition, it operates Free People retail stores, which offer casual women's apparel, intimates, activewear, shoes, accessories, home products, gifts, and beauty and wellness products for young women aged 25 to 30; and restaurants, as well as women's apparel subscription rental service under the Nuuly brand. Further, the company is involved in the wholesale of young women's contemporary casual apparel, intimates, activewear, and shoes under the Free People brand; and apparel collections under the Urban Outfitters brand. The company serves its customers directly through retail stores, websites, mobile applications, catalogs and customer contact centers, franchisee-owned stores, and department and specialty stores, as well as social media and third-party digital platforms. Urban Outfitters, Inc. was founded in 1970 and is based in Philadelphia, Pennsylvania.
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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