Tractor Supply (NASDAQ:TSCO) and Tiffany & Co. (NYSE:TIF) 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 risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.
Analyst Ratings
This is a summary of current ratings and price targets for Tractor Supply and Tiffany & Co., as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Tractor Supply | 0 | 15 | 9 | 1 | 2.44 |
Tiffany & Co. | 0 | 7 | 0 | 0 | 2.00 |
Tractor Supply presently has a consensus price target of $143.5833, indicating a potential downside of 9.64%. Tiffany & Co. has a consensus price target of $127.3750, indicating a potential downside of 3.11%. Given Tiffany & Co.'s higher probable upside, analysts plainly believe Tiffany & Co. is more favorable than Tractor Supply.
Profitability
This table compares Tractor Supply and Tiffany & Co.'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Tractor Supply | 7.62% | 46.65% | 12.23% |
Tiffany & Co. | 6.72% | 8.43% | 4.09% |
Institutional & Insider Ownership
88.3% of Tractor Supply shares are owned by institutional investors. Comparatively, 77.8% of Tiffany & Co. shares are owned by institutional investors. 1.5% of Tractor Supply shares are owned by insiders. Comparatively, 0.7% of Tiffany & Co. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Dividends
Tractor Supply pays an annual dividend of $2.08 per share and has a dividend yield of 1.3%. Tiffany & Co. pays an annual dividend of $2.32 per share and has a dividend yield of 1.8%. Tractor Supply pays out 44.4% of its earnings in the form of a dividend. Tiffany & Co. pays out 50.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Tractor Supply has raised its dividend for 10 consecutive years.
Earnings & Valuation
This table compares Tractor Supply and Tiffany & Co.'s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Tractor Supply | $8.35 billion | 2.21 | $562.35 million | $4.68 | 33.96 |
Tiffany & Co. | $4.42 billion | 3.61 | $541.10 million | $4.59 | 28.64 |
Tractor Supply has higher revenue and earnings than Tiffany & Co.. Tiffany & Co. is trading at a lower price-to-earnings ratio than Tractor Supply, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Tractor Supply has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Tiffany & Co. has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.
Summary
Tractor Supply beats Tiffany & Co. on 14 of the 18 factors compared between the two stocks.