Tandy Leather Factory (OTCMKTS:TLFA – Get Free Report) and Lowe’s Companies (NYSE:LOW – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.
Analyst Ratings
This is a breakdown of recent ratings for Tandy Leather Factory and Lowe’s Companies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tandy Leather Factory | 0 | 0 | 0 | 0 | 0.00 |
| Lowe’s Companies | 2 | 11 | 23 | 0 | 2.58 |
Lowe’s Companies has a consensus price target of $263.67, suggesting a potential upside of 18.22%. Given Lowe’s Companies’ stronger consensus rating and higher possible upside, analysts clearly believe Lowe’s Companies is more favorable than Tandy Leather Factory.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tandy Leather Factory | $82.70 million | 0.00 | $1.35 million | $0.02 | N/A |
| Lowe’s Companies | $86.29 billion | 1.45 | $6.65 billion | $11.83 | 18.85 |
Lowe’s Companies has higher revenue and earnings than Tandy Leather Factory. Tandy Leather Factory is trading at a lower price-to-earnings ratio than Lowe’s Companies, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
55.2% of Tandy Leather Factory shares are owned by institutional investors. Comparatively, 74.1% of Lowe’s Companies shares are owned by institutional investors. 47.7% of Tandy Leather Factory shares are owned by company insiders. Comparatively, 0.3% of Lowe’s Companies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Tandy Leather Factory and Lowe’s Companies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tandy Leather Factory | 0.21% | 0.33% | 0.23% |
| Lowe’s Companies | 7.51% | -67.96% | 13.31% |
Volatility and Risk
Tandy Leather Factory has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Lowe’s Companies has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.
Summary
Lowe’s Companies beats Tandy Leather Factory on 10 of the 13 factors compared between the two stocks.
About Tandy Leather Factory
Tandy Leather Factory, Inc., together with its subsidiaries, operates as a retailer of leather and leathercraft-related items in North America and Spain. It offers leather, hand tools, hardware, kits, liquids, teaching materials, open workbenches, machinery, and related accessories and supplies. The company also manufactures leather laces, cut leather pieces, do-it-yourself kits, thread laces, belt strips and straps, and Craftaids. In addition, it offers production services, including cutting, splitting, and assembly services to business customers. The company sells its products under the Tandy Leather, Eco-Flo, Craftool, CraftoolPro, Dr. Jackson's, and TandyPro brand names through company-owned stores; and orders generated from its websites, such as tandyleather.com, tandyleather.ca, tandyleather.eu, and tandyleather.com.au. It operates 106 retail stores, including 95 stores in the United States; ten stores in Canada; and one store in Spain. The company was formerly known as The Leather Factory, Inc. and changed its name to Tandy Leather Factory, Inc. in 2005. Tandy Leather Factory, Inc. was founded in 1919 and is headquartered in Fort Worth, Texas.
About Lowe’s Companies
Lowe’s Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical. In addition, the company offers installation services through independent contractors in various product categories; and extended protection plans and repair services. It sells its national brand-name merchandise and private brand products to professional customers, homeowners, renters, businesses, and government. The company also sells its products through Lowes.com website; and through mobile applications. Lowe’s Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.
Receive News & Ratings for Tandy Leather Factory Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tandy Leather Factory and related companies with MarketBeat.com's FREE daily email newsletter.
-tbk-logo-1200x675.png){kind=logo}
