Buckle (BKE) vs. Tilly's (TLYS) Financial Analysis

Buckle (NYSE: BKE) and Tilly's (NYSE:TLYS) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Buckle and Tilly's, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Buckle 1 0 0 0 1.00
Tilly's 0 1 2 0 2.67

Buckle presently has a consensus price target of $13.00, suggesting a potential downside of 41.70%. Tilly's has a consensus price target of $14.00, suggesting a potential downside of 11.73%. Given Tilly's’ stronger consensus rating and higher probable upside, analysts plainly believe Tilly's is more favorable than Buckle.

Profitability

This table compares Buckle and Tilly's’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Buckle 9.17% 19.13% 14.39%
Tilly's 2.50% 10.23% 6.32%

Insider and Institutional Ownership

59.8% of Buckle shares are held by institutional investors. Comparatively, 43.6% of Tilly's shares are held by institutional investors. 41.7% of Buckle shares are held by insiders. Comparatively, 50.1% of Tilly's shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Buckle and Tilly's’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Buckle $974.87 million 1.12 $97.96 million $1.73 12.89
Tilly's $568.95 million 0.80 $11.41 million $0.49 32.37

Buckle has higher revenue and earnings than Tilly's. Buckle is trading at a lower price-to-earnings ratio than Tilly's, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Buckle has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Tilly's has a beta of -0.42, meaning that its share price is 142% less volatile than the S&P 500.

Dividends

Buckle pays an annual dividend of $1.00 per share and has a dividend yield of 4.5%. Tilly's does not pay a dividend. Buckle pays out 57.8% of its earnings in the form of a dividend. Buckle has increased its dividend for 3 consecutive years.

Summary

Buckle beats Tilly's on 11 of the 17 factors compared between the two stocks.

About Buckle

The Buckle, Inc. is a retailer of casual apparel, footwear and accessories for young men and women. As of January 28, 2017, the Company operated 467 retail stores in 44 states throughout the United States under the names Buckle and The Buckle. The Company markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories and footwear. The Company provides customer services, such as free hemming, free gift-wrapping, easy layaways, the Buckle private label credit card, and a guest loyalty program. The Company offers denims from brands, such as Miss Me, Rock Revival, Big Star Vintage, Buffalo Jeans, KanCan, Flying Monkey and Levi’s. Its other brands include Hurley, Billabong, Affliction, American Fighter, Fast & Furious, Oakley, Fox, Puma, Obey, RVCA, Salvage, 7 Diamonds, Nixon, Amuse Society, Free People, White Crow, Corral, Reef, Kustom, Timberland, UGG, TOMS, SAXX, Stance, Lokai, Ray-Ban, and Fossil.

About Tilly's

Tilly’s, Inc. is a destination specialty retailer of casual apparel, footwear and accessories for young men, young women, boys and girls. The Company offers an unparalleled selection of relevant brands, styles, colors, sizes and price points. The Company’s apparel merchandise includes branded, fashion and styles for tops, outerwear, bottoms and dresses. Its accessories merchandise includes backpacks, hats, sunglasses, headphones, handbags, watches, jewelry and others. The Company offers its products through stores and Website. The Company operates over 220 stores in approximately 30 states. The Company’s stores are located in malls, lifestyle centers, power centers, community centers, outlet centers and street-front locations. The Company also operates an e-commerce platform for desktop and mobile. The Company’s third-party brands include AYC, Adidas, Billabong, Converse, Hurley, Nixon, JanSport, LRG and Stance, among others.

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