The Container Store Group (NYSE:TCS – Get Free Report) and Tile Shop (NASDAQ:TTSH – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.
Earnings & Valuation
This table compares The Container Store Group and Tile Shop’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| The Container Store Group | $1.05 billion | 0.11 | -$158.86 million | ($3.70) | -0.63 |
| Tile Shop | $394.70 million | 0.62 | $15.70 million | $0.29 | 18.83 |
Tile Shop has lower revenue, but higher earnings than The Container Store Group. The Container Store Group is trading at a lower price-to-earnings ratio than Tile Shop, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| The Container Store Group | 1 | 2 | 0 | 0 | 1.67 |
| Tile Shop | 0 | 0 | 0 | 0 | N/A |
The Container Store Group currently has a consensus price target of $4.50, indicating a potential upside of 93.13%. Given The Container Store Group’s higher probable upside, equities research analysts clearly believe The Container Store Group is more favorable than Tile Shop.
Insider & Institutional Ownership
69.5% of The Container Store Group shares are held by institutional investors. Comparatively, 35.1% of Tile Shop shares are held by institutional investors. 34.3% of The Container Store Group shares are held by company insiders. Comparatively, 36.5% of Tile Shop shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares The Container Store Group and Tile Shop’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| The Container Store Group | -18.27% | 4.73% | 1.51% |
| Tile Shop | 3.34% | 11.23% | 3.77% |
Volatility and Risk
The Container Store Group has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Tile Shop has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.
Summary
Tile Shop beats The Container Store Group on 8 of the 12 factors compared between the two stocks.
About The Container Store Group
The Container Store Group, Inc. operates as a specialty retailer of organizing solutions, custom spaces, and in-home organizing services in the United States. The company operates in two segments, The Container Store and Elfa. Its stores provide custom space offerings; countertop organizers, cosmetic and jewelry organizers, shower and bathtub organizers, drawer organization, and cabinet storage products; closets; and ventilated and solid shelving and drawer components and systems, wall and door rack solutions, accessories, utility and garage systems, and sliding doors. The company also offers gift packaging products; wall mounted, adhesive, magnetic, overdoor, command hooks, wall mounted shelves, and floor protection hooks; and canisters, jars, lunchtime essentials, bulk food storage, plastic and glass food storage, drawer liners and organizers, countertop organizers, dish drying racks, cabinet storage, pantry organizers, kitchen gadgets, and China storage products. In addition, it provides step stools, hampers, laundry bags and baskets, clothes drying racks, and cleaning tools; desktop collections, paper storage, file carts and cabinets, literature organizers, message boards, media storage, photo storage, display, small craft and parts organizers, and desk chairs; and free-standing and wall mounted shelving, cube systems, component shelving, desks, chairs, and garages. Further, the company offers drawers, boxes and bins, totes, crates, carts, toy storage, archival storage, storage bags, specialty bins, boxes, and cubes; kitchen step-on and sensor cans, recycle bins, composting, wastebaskets, open cans, and trash bags; and luggage, clothing organizers, cosmetic and jewelry organizers, travel bottles, and travel accessories. It sells its products directly to customers through its website, responsive mobile site, and call center, as well as to various retailers and distributors on wholesale basis. The company was founded in 1978 and is headquartered in Coppell, Texas.
About Tile Shop
Tile Shop Holdings, Inc. operates as a specialty retailer of natural stone and man-made tiles, setting and maintenance materials, and related accessories in the United States. It offers natural stone products, such as marble, travertine, granite, quartz, sandstone, slate, and onyx tiles; and man-made products, including ceramic, porcelain, glass, cement, wood look, and metal and luxury vinyl tiles primarily under the Rush River and Fired Earth brands. The company also manufactures setting and maintenance materials, such as thinset, grout, and sealers under the Superior brand name; accessories, including installation tools, shower and bath shelves, drains, and related products; and offers customers delivery service through third-party freight providers. Tile Shop Holdings, Inc. was founded in 1985 and is headquartered in Plymouth, Minnesota.
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