Reviewing Tilly’s (TLYS) & Marks & Spencer (MAKSY)

Tilly’s (NYSE: TLYS) and Marks & Spencer (OTCMKTS:MAKSY) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Dividends

Marks & Spencer pays an annual dividend of $0.47 per share and has a dividend yield of 5.8%. Tilly’s does not pay a dividend. Marks & Spencer pays out 56.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Tilly’s and Marks & Spencer, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tilly’s 0 0 2 0 3.00
Marks & Spencer 0 2 0 0 2.00

Tilly’s presently has a consensus target price of $17.00, suggesting a potential upside of 43.34%. Given Tilly’s’ stronger consensus rating and higher possible upside, equities analysts clearly believe Tilly’s is more favorable than Marks & Spencer.

Valuation and Earnings

This table compares Tilly’s and Marks & Spencer’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tilly’s $576.90 million 0.60 $14.70 million $0.65 18.25
Marks & Spencer $14.40 billion 0.45 $153.08 million $0.83 9.70

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

Insider & Institutional Ownership

47.6% of Tilly’s shares are held by institutional investors. Comparatively, 0.1% of Marks & Spencer shares are held by institutional investors. 48.3% of Tilly’s shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Tilly’s and Marks & Spencer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tilly’s 2.55% 11.03% 6.52%
Marks & Spencer N/A N/A N/A

Volatility and Risk

Tilly’s has a beta of -0.26, meaning that its share price is 126% less volatile than the S&P 500. Comparatively, Marks & Spencer has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Summary

Tilly’s beats Marks & Spencer on 11 of the 16 factors compared between the two stocks.

Tilly’s Company Profile

Tilly's, Inc. retails casual apparel, footwear, and accessories for young men and women, and boys and girls in the United States. Its apparel merchandise includes tops, outerwear, bottoms, and dresses; and accessories merchandise comprises backpacks, hats, sunglasses, headphones, handbags, watches, jewelry, and others. The company also provides third-party merchandise assortment across its various product categories. As of February 3, 2018, it operated 219 stores in 32 states. The company also sells its products through its e-commerce Website, tillys.com. Tilly's, Inc.was founded in 1982 and is headquartered in Irvine, California.

Marks & Spencer Company Profile

Marks and Spencer Group plc operates various retail stores. It offers food products; and womenswear, menswear, kids wear, lingerie, and beauty and home products through its stores and online. The company operates 942 stores, including 253 owned and 383 franchise Simply Food stores; and 343 full-line stores and 41 outlet stores in the United Kingdom. It also operates 454 stores in Europe, Asia, and the Middle East. Marks and Spencer Group plc was founded in 1884 and is headquartered in London, the United Kingdom.

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