Critical Survey: Tapestry (NYSE:TPR) vs. Geox (OTCMKTS:GXSBF)

Tapestry (NYSE:TPR) and Geox (OTCMKTS:GXSBF) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Valuation & Earnings

This table compares Tapestry and Geox”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tapestry	$8.00 billion	3.25	$1.53 billion	$7.29	17.89
Geox	N/A	N/A	N/A	($0.06)	-5.73

Tapestry has higher revenue and earnings than Geox. Geox is trading at a lower price-to-earnings ratio than Tapestry, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

90.8% of Tapestry shares are held by institutional investors. Comparatively, 11.8% of Geox shares are held by institutional investors. 1.3% of Tapestry shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tapestry	19.09%	254.95%	22.75%
Geox	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Tapestry and Geox, as reported by MarketBeat.

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

Tapestry currently has a consensus target price of $175.12, indicating a potential upside of 34.29%. Given Tapestry’s stronger consensus rating and higher possible upside, research analysts plainly believe Tapestry is more favorable than Geox.

Summary

Tapestry beats Geox on 12 of the 12 factors compared between the two stocks.

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.

About Geox

Geox S.p.A. creates, produces, promotes, and distributes footwear and apparel to retailers and end consumers in Italy, Europe, North America, and internationally. The company offers shoes and apparel under the Geox brand name through multi-brand selling points, Geox Shops, and e-commerce channels. The company is based in Montebelluna, Italy. Geox S.p.A. is a subsidiary of LIR S.r.l.