Analyzing Esprit (OTCMKTS:ESPGY) & Tilly’s (NYSE:TLYS)

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

Profitability

This table compares Tilly’s and Esprit’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%
Esprit	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Tilly’s and Esprit, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tilly’s	1	3	0	0	1.75
Esprit	0	0	0	0	0.00

Tilly’s presently has a consensus price target of $2.25, suggesting a potential upside of 44.23%. Given Tilly’s’ stronger consensus rating and higher probable upside, research analysts plainly believe Tilly’s is more favorable than Esprit.

Valuation and Earnings

This table compares Tilly’s and Esprit”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tilly’s	$569.45 million	0.08	-$46.23 million	($1.14)	-1.37
Esprit	$5.38 million	0.39	-$157.30 million	N/A	N/A

Tilly’s has higher revenue and earnings than Esprit.

Insider & Institutional Ownership

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

Summary

Tilly’s beats Esprit on 6 of the 10 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 Esprit

Esprit Holdings Limited, an investment holding company, engages in retail and wholesale distribution, and licensing of fashion and non-apparel products. It operates through Europe; Asia; E-shop; and Corporate Services, Sourcing, Licensing and Others segments. The company offers apparel and accessories under the ESPRIT brand name through retail stores and e-commerce platforms. It is also involved in the sourcing, purchasing, distributing, and sale of merchandise; provision of financial and treasury services, as well as logistic services comprising customs dealing and quality control; design and image directions; and conceptualization and development of global uniform image businesses. Esprit Holdings Limited was founded in 1968 and is headquartered in North Point, Hong Kong.