Tandy Leather Factory (NASDAQ:TLF – Get Free Report) and Build-A-Bear Workshop (NYSE:BBW – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.
Valuation & Earnings
This table compares Tandy Leather Factory and Build-A-Bear Workshop”s gross 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 |
| Build-A-Bear Workshop | $529.83 million | 0.70 | $52.20 million | $4.03 | 7.30 |
Volatility and Risk
Tandy Leather Factory has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Build-A-Bear Workshop has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Tandy Leather Factory and Build-A-Bear Workshop, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tandy Leather Factory | 1 | 0 | 0 | 0 | 1.00 |
| Build-A-Bear Workshop | 1 | 1 | 2 | 0 | 2.25 |
Build-A-Bear Workshop has a consensus price target of $53.50, suggesting a potential upside of 81.97%. Given Build-A-Bear Workshop’s stronger consensus rating and higher possible upside, analysts plainly believe Build-A-Bear Workshop is more favorable than Tandy Leather Factory.
Profitability
This table compares Tandy Leather Factory and Build-A-Bear Workshop’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% |
| Build-A-Bear Workshop | 9.96% | 29.85% | 13.52% |
Institutional & Insider Ownership
56.4% of Tandy Leather Factory shares are owned by institutional investors. Comparatively, 79.3% of Build-A-Bear Workshop shares are owned by institutional investors. 36.2% of Tandy Leather Factory shares are owned by company insiders. Comparatively, 4.0% of Build-A-Bear Workshop shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Build-A-Bear Workshop beats Tandy Leather Factory on 13 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 Build-A-Bear Workshop
Build-A-Bear Workshop, Inc. operates as a multi-channel retailer of plush animals and related products in the United States, Canada, the United Kingdom, Ireland, and internationally. The company operates through three segments: Direct-to-Consumer, Commercial, and International Franchising. Its merchandise comprises various styles of plush products to be stuffed, pre-stuffed plush products, and sounds and scents that can be added to the stuffed animals, as well as range of clothing, shoes and accessories, and other toy and novelty items, including family sleepwear. The company operates its stores under the Build-A-Bear Workshop brand name; and sells its products through its e-commerce sites and third-party marketplace sites. Build-A-Bear Workshop, Inc. was founded in 1997 and is headquartered in Saint Louis, Missouri.
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