Financial Review: Tractor Supply (NASDAQ:TSCO) & Warby Parker (NYSE:WRBY)

Warby Parker (NYSE:WRBY) and Tractor Supply (NASDAQ:TSCO) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Valuation & Earnings

This table compares Warby Parker and Tractor Supply”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warby Parker	$871.91 million	2.92	$1.64 million	$0.07	335.80
Tractor Supply	$15.52 billion	1.09	$1.10 billion	$1.92	16.82

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

Risk and Volatility

Warby Parker has a beta of 1.91, meaning that its stock price is 91% more volatile than the S&P 500. Comparatively, Tractor Supply has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Warby Parker and Tractor Supply, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warby Parker	0	4	7	0	2.64
Tractor Supply	3	12	13	0	2.36

Warby Parker currently has a consensus target price of $30.08, suggesting a potential upside of 27.98%. Tractor Supply has a consensus target price of $39.31, suggesting a potential upside of 21.73%. Given Warby Parker’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Warby Parker is more favorable than Tractor Supply.

Profitability

This table compares Warby Parker and Tractor Supply’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warby Parker	0.85%	3.36%	1.72%
Tractor Supply	6.42%	41.74%	9.42%

Institutional and Insider Ownership

93.2% of Warby Parker shares are held by institutional investors. Comparatively, 98.7% of Tractor Supply shares are held by institutional investors. 16.8% of Warby Parker shares are held by company insiders. Comparatively, 0.6% of Tractor Supply shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Tractor Supply beats Warby Parker on 8 of the 14 factors compared between the two stocks.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.

About Tractor Supply

Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers various merchandise, including livestock and equine feed and equipment, poultry, fencing, and sprayers and chemicals; food, treats, and equipment for dogs, cats, and other small animals, as well as dog wellness products; seasonal and recreation products comprising tractors and riders, lawn and garden, bird feeding, power equipment, and other recreational products; truck, tool, and hardware products, such as truck accessories, trailers, generators, lubricants, batteries, and hardware and tools; and clothing, gift, and décor products consist of clothing, footwear, toys, snacks, and decorative merchandise. It provides its products under the 4health, Paws & Claws, American Farmworks, Producer's Pride, Bit & Bridle, Red Shed, Blue Mountain, Redstone, C.E. Schmidt, Retriever, Country Lane, Ridgecut, Countyline, Royal Wing, Country Tuff, Strive, Dumor, Traveller, Farm Table, Treeline, Groundwork, TSC Tractor Supply Co, Huskee, Untamed, and JobSmart brand names. The company operates its retail stores under the Tractor Supply Company, Petsense by Tractor Supply, and Orscheln Farm and Home names; and operates websites under the TractorSupply.com and Petsense.com names. It sells its products to recreational farmers, ranchers, and others. Tractor Supply Company was founded in 1938 and is based in Brentwood, Tennessee.