Tandy Leather Factory (NASDAQ:TLF – Get Free Report) and Driven Brands (NASDAQ:DRVN – 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 valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.
Institutional & Insider Ownership
56.4% of Tandy Leather Factory shares are held by institutional investors. Comparatively, 77.1% of Driven Brands shares are held by institutional investors. 36.2% of Tandy Leather Factory shares are held by insiders. Comparatively, 4.4% of Driven Brands shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Tandy Leather Factory and Driven Brands, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tandy Leather Factory | 1 | 0 | 0 | 0 | 1.00 |
| Driven Brands | 0 | 7 | 5 | 2 | 2.64 |
Profitability
This table compares Tandy Leather Factory and Driven Brands’ 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% |
| Driven Brands | 8.61% | 24.13% | 5.03% |
Volatility & Risk
Tandy Leather Factory has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Driven Brands has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
Earnings and Valuation
This table compares Tandy Leather Factory and Driven Brands”s 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) | -15.41 |
| Driven Brands | $1.86 billion | 1.14 | $140.16 million | $1.04 | 12.38 |
Driven Brands has higher revenue and earnings than Tandy Leather Factory. Tandy Leather Factory is trading at a lower price-to-earnings ratio than Driven Brands, indicating that it is currently the more affordable of the two stocks.
Summary
Driven Brands beats Tandy Leather Factory on 14 of the 15 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 Driven Brands
Driven Brands Holdings Inc., together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. It offers various services, such as paint, collision, glass, repair, car wash, oil change, and maintenance services. The company also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as training services to repair and maintenance, and paint and collision shops. It sells its products and services under the CARSTAR, IMO, MAACO, Meineke Car Care Centers, PH Vitres D’Autos, Take 5 Oil Change, Take 5 Car Wash, Auto Glass Now, Fix Auto USA, and 1-800-Radiator & A/C, Spire Supply, and Automotive Training Institute brands. The company was founded in 1972 and is headquartered in Charlotte, North Carolina.
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