Reviewing Tapestry (NYSE:TPR) & Stage Stores (OTCMKTS:SSINQ)

Stage Stores (OTCMKTS:SSINQ) and Tapestry (NYSE:TPR) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Stage Stores and Tapestry, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stage Stores	0	0	0	0	0.00
Tapestry	0	4	15	2	2.90

Tapestry has a consensus target price of $170.06, suggesting a potential upside of 20.24%. Given Tapestry’s stronger consensus rating and higher probable upside, analysts plainly believe Tapestry is more favorable than Stage Stores.

Institutional and Insider Ownership

90.8% of Tapestry shares are owned by institutional investors. 11.6% of Stage Stores shares are owned by insiders. Comparatively, 1.3% of Tapestry shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Stage Stores and Tapestry’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stage Stores	N/A	N/A	N/A
Tapestry	8.44%	229.70%	22.06%

Earnings & Valuation

This table compares Stage Stores and Tapestry”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stage Stores	N/A	N/A	N/A	N/A	N/A
Tapestry	$7.01 billion	4.08	$183.20 million	$3.12	45.33

Tapestry has higher revenue and earnings than Stage Stores.

Summary

Tapestry beats Stage Stores on 9 of the 10 factors compared between the two stocks.

About Stage Stores

Stage Stores, Inc. operates specialty department stores primarily in small towns and rural communities in the United States. The company sells moderately priced and brand name apparel, accessories, cosmetics, footwear, and home goods through its department stores, off-price stores, and e-commerce Website, as well as through private label credit card and loyalty programs. As of September 17, 2019, it operated 625 BEALLS, GOODY'S, PALAIS ROYAL, PEEBLES, and STAGE specialty department stores; and 158 GORDMANS off-price stores. The company was founded in 1988 and is headquartered in Houston, Texas. On May 10, 2020, Stage Stores, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The plan was later approved as Chapter 11 liquidation on August 14, 2020.

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.