Financial Review: Tapestry (TPR) vs. The Competition

Tapestry (NYSE:TPR) is one of 60 public companies in the “RETAIL – APP/SHOE” industry, but how does it weigh in compared to its rivals? We will compare Tapestry to similar companies based on the strength of its analyst recommendations, risk, institutional ownership, dividends, valuation, earnings and profitability.

Dividends

Tapestry pays an annual dividend of $1.40 per share and has a dividend yield of 1.6%. Tapestry pays out 36.8% of its earnings in the form of a dividend. As a group, “RETAIL – APP/SHOE” companies pay a dividend yield of 2.7% and pay out 36.7% of their earnings in the form of a dividend. Tapestry has raised its dividend for 3 consecutive years. Tapestry lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Tapestry has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Tapestry’s rivals have a beta of 1.30, meaning that their average share price is 30% more volatile than the S&P 500.

Insider & Institutional Ownership

90.8% of Tapestry shares are owned by institutional investors. Comparatively, 66.4% of shares of all “RETAIL – APP/SHOE” companies are owned by institutional investors. 1.2% of Tapestry shares are owned by company insiders. Comparatively, 19.7% of shares of all “RETAIL – APP/SHOE” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Tapestry and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tapestry	0	3	17	0	2.85
Tapestry Competitors	870	4915	5299	112	2.42

Tapestry currently has a consensus target price of $88.78, suggesting a potential upside of 2.86%. As a group, “RETAIL – APP/SHOE” companies have a potential upside of 29.25%. Given Tapestry’s rivals higher probable upside, analysts plainly believe Tapestry has less favorable growth aspects than its rivals.

Profitability

This table compares Tapestry and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tapestry	12.50%	51.84%	10.83%
Tapestry Competitors	-6.37%	2.23%	1.43%

Earnings and Valuation

This table compares Tapestry and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tapestry	$6.67 billion	$816.00 million	22.71
Tapestry Competitors	$5.94 billion	$362.55 million	53.19

Tapestry has higher revenue and earnings than its rivals. Tapestry is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Tapestry beats its rivals on 9 of the 15 factors compared.

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.