Xcel Brands (NASDAQ:XELB – Get Free Report) and Tandy Leather Factory (NASDAQ:TLF – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.
Insider and Institutional Ownership
18.5% of Xcel Brands shares are owned by institutional investors. Comparatively, 56.4% of Tandy Leather Factory shares are owned by institutional investors. 29.5% of Xcel Brands shares are owned by insiders. Comparatively, 36.2% of Tandy Leather Factory shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Xcel Brands has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Tandy Leather Factory has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Xcel Brands | $4.94 million | 1.64 | -$17.46 million | ($4.65) | -0.29 |
| Tandy Leather Factory | $76.32 million | 0.25 | $9.10 million | ($0.24) | -9.88 |
Tandy Leather Factory has higher revenue and earnings than Xcel Brands. Tandy Leather Factory is trading at a lower price-to-earnings ratio than Xcel Brands, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations for Xcel Brands and Tandy Leather Factory, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Xcel Brands | 1 | 0 | 1 | 0 | 2.00 |
| Tandy Leather Factory | 1 | 0 | 0 | 0 | 1.00 |
Xcel Brands currently has a consensus price target of $3.00, suggesting a potential upside of 123.88%. Given Xcel Brands’ stronger consensus rating and higher probable upside, research analysts plainly believe Xcel Brands is more favorable than Tandy Leather Factory.
Profitability
This table compares Xcel Brands and Tandy Leather Factory’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Xcel Brands | -361.04% | -83.71% | -34.96% |
| Tandy Leather Factory | -2.94% | -4.31% | -2.74% |
Summary
Tandy Leather Factory beats Xcel Brands on 8 of the 14 factors compared between the two stocks.
About Xcel Brands
Xcel Brands, Inc., together with its subsidiaries, operates as a media and consumer products company in the United States. The company designs, produces, markets, wholesales, and sells branded apparel, footwear, accessories, jewelry, home goods, and other consumer products; and acquires consumer lifestyle brands, including the Isaac Mizrahi, the LOGO by Lori Goldstein, the Judith Ripka, the Halston brand, the C Wonder, the TowerHill by Christie Brinkley brand (the CB brand), and other brands, as well as manages the Longaberger brand. It licenses its brands to third parties; and designs, produces, markets, and distributes through an omni-channel retail sales strategy, which include distribution through interactive television, digital live-stream shopping, brick-and-mortar retail, and e-commerce channels. The company also offers live streaming, social media and other marketing, and public relations support for its brands. In addition, it markets its brands through www.isaacmizrahi.com; www.halston.com; www.judithripka.com; www.cwonder.com; www.lorigoldstein.com; and www.longaberger.com. Xcel Brands, Inc. was founded in 2011 and is headquartered in New York, New York.
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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