Analyzing Torrid (NYSE:CURV) & Tandy Leather Factory (NASDAQ:TLF)

Tandy Leather Factory (NASDAQ:TLFGet Free Report) and Torrid (NYSE:CURVGet Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Risk & Volatility

Tandy Leather Factory has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500. Comparatively, Torrid has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Tandy Leather Factory and Torrid, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tandy Leather Factory 1 0 0 0 1.00
Torrid 2 5 1 0 1.88

Torrid has a consensus price target of $1.64, suggesting a potential downside of 21.65%. Given Torrid’s stronger consensus rating and higher possible upside, analysts plainly believe Torrid is more favorable than Tandy Leather Factory.

Valuation and Earnings

This table compares Tandy Leather Factory and Torrid”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tandy Leather Factory $76.32 million 0.28 $9.10 million ($0.17) -15.24
Torrid $1.00 billion 0.21 -$7.03 million ($0.12) -17.42

Tandy Leather Factory has higher earnings, but lower revenue than Torrid. Torrid is trading at a lower price-to-earnings ratio than Tandy Leather Factory, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

56.4% of Tandy Leather Factory shares are held by institutional investors. Comparatively, 81.8% of Torrid shares are held by institutional investors. 36.2% of Tandy Leather Factory shares are held by insiders. Comparatively, 6.5% of Torrid shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Tandy Leather Factory and Torrid’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tandy Leather Factory -2.14% -3.31% -1.98%
Torrid -1.28% N/A -3.10%

Summary

Torrid beats Tandy Leather Factory on 9 of the 14 factors compared between the two stocks.

About Tandy Leather Factory

(Get Free Report)

Tandy Leather Factory, Inc. engages in the distribution of leather and related products. It offers leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. It operates through North America and International geographical segments. The North America geographical segment consists of 115 stores, which offer a broad selection of products combined with leathercraft expertise in a one-stop shop. The International geographical segment comprises of similar to North America segment but generally located in light industrial areas. The company was founded by J. Wray Thompson, Sr. and Ronald C. Morgan in 1980 and is headquartered in Fort Worth, TX.

About Torrid

(Get Free Report)

Torrid Holdings Inc. operates in women’s plus-size apparel and intimates market in North America. The company designs, develops, and merchandises its products under the Torrid, Torrid Curve, CURV, and Lovesick brand names. It is involved in the sale of tops, bottoms, dresses, denims, activewear, intimates, sleep wear, swim wear, and outerwear products; and non-apparel products comprising accessories, footwear, and beauty products. The company sells its products directly to consumers through its e-commerce platform and its physical stores. Torrid Holdings Inc. was incorporated in 2019 and is headquartered in City Of Industry, California.

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