Tandy Leather Factory (NASDAQ:TLF – Get Free Report) and Torrid (NYSE:CURV – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Insider & Institutional Ownership
56.4% of Tandy Leather Factory shares are owned by institutional investors. Comparatively, 81.8% of Torrid shares are owned by institutional investors. 36.2% of Tandy Leather Factory shares are owned by company insiders. Comparatively, 6.5% of Torrid shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
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% |
Risk & Volatility
Analyst Recommendations
This is a summary of recent ratings and price targets for Tandy Leather Factory and Torrid, as reported 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 target price of $1.64, suggesting a potential downside of 26.73%. Given Torrid’s stronger consensus rating and higher probable upside, analysts plainly believe Torrid is more favorable than Tandy Leather Factory.
Earnings and Valuation
This table compares Tandy Leather Factory and Torrid”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tandy Leather Factory | $76.32 million | 0.27 | $9.10 million | ($0.17) | -15.00 |
| Torrid | $1.00 billion | 0.22 | -$7.03 million | ($0.12) | -18.62 |
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.
Summary
Torrid beats Tandy Leather Factory on 9 of the 14 factors compared between the two stocks.
About Tandy Leather Factory
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
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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