Contrasting Tapestry (NYSE:TPR) and Hermès International Société en commandite par actions (OTCMKTS:HESAY)

Tapestry (NYSE:TPR) and Hermès International Société en commandite par actions (OTCMKTS:HESAY) are both consumer cyclical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Dividends

Tapestry pays an annual dividend of $1.40 per share and has a dividend yield of 3.5%. Hermès International Société en commandite par actions pays an annual dividend of $0.23 per share and has a dividend yield of 0.1%. Tapestry pays out 37.0% of its earnings in the form of a dividend. Hermès International Société en commandite par actions pays out 29.6% 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.

Profitability

This table compares Tapestry and Hermès International Société en commandite par actions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tapestry	13.15%	39.78%	9.64%
Hermès International Société en commandite par actions	N/A	N/A	N/A

Earnings & Valuation

This table compares Tapestry and Hermès International Société en commandite par actions’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tapestry	$6.70 billion	1.39	$936.00 million	$3.78	10.69
Hermès International Société en commandite par actions	N/A	N/A	N/A	$0.78	298.85

Tapestry has higher revenue and earnings than Hermès International Société en commandite par actions. Tapestry is trading at a lower price-to-earnings ratio than Hermès International Société en commandite par actions, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Tapestry and Hermès International Société en commandite par actions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tapestry	0	5	10	0	2.67
Hermès International Société en commandite par actions	0	0	0	0	N/A

Tapestry presently has a consensus price target of $47.00, indicating a potential upside of 16.37%. Given Tapestry’s higher probable upside, equities analysts plainly believe Tapestry is more favorable than Hermès International Société en commandite par actions.

Insider and Institutional Ownership

90.8% of Tapestry shares are held by institutional investors. 0.9% of Tapestry shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Tapestry beats Hermès International Société en commandite par actions on 10 of the 12 factors compared between the two stocks.

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.

About Hermès International Société en commandite par actions

Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods. The company offers leather goods and saddlery, such as bags for men and women, travel articles, small leather goods and accessories, saddles, bridles, and a full range of equestrian products and clothing; ready-to-wear garments for men and women; and accessories, including jewelry, belts, hats, gloves, the Internet of Things products, and shoes. It also provides silk and textiles for men and women; art of living and tableware products; perfumes; and watches. In addition, the company is also involved in weaving, engraving, printing, dyeing, finishing, and producing textiles; and purchasing, tanning, dyeing, finishing, and selling precious leathers. It sells its products through a network of stores worldwide. The company also sells watches, perfumes, and tableware through a network of specialized stores. Hermès International Société en commandite par actions was founded in 1837 and is based in Paris, France. Hermès International Société en commandite par actions operates as a subsidiary of H51 SAS.