Li Ning (OTCMKTS:LNNGY) & Tilly’s (NYSE:TLYS) Head-To-Head Review

Tilly’s (NYSE:TLYS) and Li Ning (OTCMKTS:LNNGY) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Tilly’s and Li Ning, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tilly’s	1	3	0	0	1.75
Li Ning	1	0	0	0	1.00

Tilly’s currently has a consensus target price of $2.25, indicating a potential upside of 69.17%. Given Tilly’s’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Tilly’s is more favorable than Li Ning.

Earnings and Valuation

This table compares Tilly’s and Li Ning”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tilly’s	$569.45 million	0.07	-$46.23 million	($1.14)	-1.17
Li Ning	$3.99 billion	1.81	$419.10 million	N/A	N/A

Li Ning has higher revenue and earnings than Tilly’s.

Profitability

This table compares Tilly’s and Li Ning’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tilly’s	-6.24%	-39.59%	-10.17%
Li Ning	N/A	N/A	N/A

Volatility & Risk

Tilly’s has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Li Ning has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Institutional & Insider Ownership

76.4% of Tilly’s shares are owned by institutional investors. 2.8% of Tilly’s shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Li Ning beats Tilly’s on 6 of the 11 factors compared between the two stocks.

About Tilly’s

Tilly’s, Inc. engages in the retail of casual apparel, footwear, and accessories. Its stores are located in retail centers, including malls, lifestyle centers, power centers, community centers, outlet centers, and street-front locations. The company was founded by Hezy Shaked and Tilly Levine in 1982 and is headquartered in Irvine, CA.

About Li Ning

Li Ning Company Limited, a sports brand company, engages in the research and development, design, manufacture, marketing, distribution, and retail of sporting goods in the People’s Republic of China. The company offers sporting goods, including professional and leisure footwear, apparel, equipment, and accessories under the LI-NING brand. It also develops, manufactures, markets, distributes, and/or sells outdoor sports products under the AIGLE brand; table tennis products under the Double Happiness brand name; fashionable fitness products for dance and yoga under the Danskin brand; and badminton products under the Kason brand name. The company also provides brand licensing, administrative, and property management services. It operates conventional stores, flagship stores, China LI-NING stores, LI-NING 1990 stores, factory outlets, and multi-brand stores under the LI-NING brand. The company was founded in 1990 and is headquartered in Beijing, the People’s Republic of China.