Critical Review: Lakeland Industries (LAKE) and Tumi Holdings (TUMI)

Lakeland Industries (NASDAQ: LAKE) and Tumi Holdings (NYSE:TUMI) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Valuation and Earnings

This table compares Lakeland Industries and Tumi Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lakeland Industries $90.42 million 1.35 $10.08 million $0.82 18.48
Tumi Holdings N/A N/A N/A N/A N/A

Lakeland Industries has higher revenue and earnings than Tumi Holdings.

Insider & Institutional Ownership

42.4% of Lakeland Industries shares are held by institutional investors. 8.6% of Lakeland Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Lakeland Industries and Tumi Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lakeland Industries 0 0 1 0 3.00
Tumi Holdings 0 0 0 0 N/A

Lakeland Industries currently has a consensus target price of $18.00, indicating a potential upside of 18.81%. Given Lakeland Industries’ higher probable upside, equities analysts plainly believe Lakeland Industries is more favorable than Tumi Holdings.

Profitability

This table compares Lakeland Industries and Tumi Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lakeland Industries 6.65% 8.27% 7.02%
Tumi Holdings 8.95% 10.52% 8.26%

Summary

Lakeland Industries beats Tumi Holdings on 5 of the 8 factors compared between the two stocks.

Lakeland Industries Company Profile

Lakeland Industries, Inc. (Lakeland) manufactures and sells a line of safety garments and accessories for the industrial and public protective clothing market. The Company’s product categories include limited use/disposable protective clothing; high-end chemical protective suits; firefighting, flame resistant personal protective equipment (FR PPE) and heat protective apparel; reusable woven garments; high visibility clothing, and glove and sleeves. The Company’s products are sold by its in-house customer service group, its regional sales managers and independent sales representatives to a network of over 1,200 North American safety and mill supply distributors. These distributors in turn supply end user industrial customers, such as integrated oil, chemical/petrochemical, utilities, automobile, steel, glass, construction, smelting, munition plants, janitorial, pharmaceutical, mortuaries and high technology electronics manufacturers, as well as scientific and medical laboratories.

Tumi Holdings Company Profile

Tumi Holdings, Inc. (Tumi) offers a line of travel and business products and accessories in multiple categories. The Company operates through four segments: Direct-to-Consumer North America, which sells its products directly to consumers through a network of approximately 150 company-owned retail stores consisting of full-price stores and outlet stores; Direct-to-Consumer International, which sells its products directly to consumers through a network of over 20 company-owned full-price and outlet stores in street venues and select malls in international locations; Indirect-to-Consumer North America, which sells its products to wholesale customers in North America through approximately 800 doors, including specialty luggage retailers, prestige department stores and business-to-business channels, and Indirect-to-Consumer International, which sells its products to international wholesale customers through approximately 1,000 doors.

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