ON (NYSE:ONON – Get Free Report) and Tapestry (NYSE:TPR – Get Free Report) are both large-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.
Risk & Volatility
ON has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500. Comparatively, Tapestry has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.
Earnings & Valuation
This table compares ON and Tapestry”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ON | $3.64 billion | 6.81 | $245.87 million | $0.93 | 41.74 |
| Tapestry | $7.85 billion | 3.71 | $183.20 million | $3.12 | 46.18 |
ON has higher earnings, but lower revenue than Tapestry. ON is trading at a lower price-to-earnings ratio than Tapestry, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ON and Tapestry’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ON | 7.92% | 15.72% | 8.99% |
| Tapestry | 8.44% | 229.70% | 22.06% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for ON and Tapestry, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ON | 1 | 4 | 15 | 2 | 2.82 |
| Tapestry | 0 | 4 | 15 | 2 | 2.90 |
ON presently has a consensus price target of $55.05, suggesting a potential upside of 41.82%. Tapestry has a consensus price target of $165.12, suggesting a potential upside of 14.61%. Given ON’s higher possible upside, research analysts plainly believe ON is more favorable than Tapestry.
Insider & Institutional Ownership
36.4% of ON shares are held by institutional investors. Comparatively, 90.8% of Tapestry shares are held by institutional investors. 68.6% of ON shares are held by company insiders. Comparatively, 1.3% of Tapestry shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Tapestry beats ON on 8 of the 13 factors compared between the two stocks.
About ON
On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.
About Tapestry
Tapestry, Inc. provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women’s handbags; and women’s accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms. The company also provides men products, which includes bag collections, such as business cases, computer bags, messenger-style bags, backpacks, and totes; small leather goods including wallets, card cases, travel organizers, and belts; and footwear, watches, fragrances, sunglasses, novelty accessories, and ready-to-wear items. In addition, it offers other products including women’s footwear and fragrances; eyewear and sunglasses; and jewelry, such as bracelets, necklaces, rings, and earrings, watches, and other women’s seasonal lifestyle apparel collections, including outerwear, ready-to-wear and cold weather accessories, such as gloves, scarves, and hats. Further, the company provides kids items, housewares, and home accessories, such as fashion bedding and tableware, stationery, and gifts. It offers its products through e-commerce sites and concession shop-in-shops, wholesale, and third-party distributors under the Coach, Kate Spade, and Stuart Weitzman brand names. The company was formerly known as Coach, Inc. and changed its name to Tapestry, Inc. in October 2017. Tapestry, Inc. was founded in 1941 and is headquartered in New York, New York.
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