Head to Head Comparison: Container Store (The) (TCS) vs. Tractor Supply (TSCO)

Container Store (The) (NYSE: TCS) and Tractor Supply (NASDAQ:TSCO) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Dividends

Tractor Supply pays an annual dividend of $1.08 per share and has a dividend yield of 1.7%. Container Store (The) does not pay a dividend. Tractor Supply pays out 32.0% of its earnings in the form of a dividend.

Volatility and Risk

Container Store (The) has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, Tractor Supply has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.

Earnings & Valuation

This table compares Container Store (The) and Tractor Supply’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Container Store (The) $819.93 million 0.32 $14.95 million $0.10 53.70
Tractor Supply $6.78 billion 1.16 $437.12 million $3.37 18.60

Tractor Supply has higher revenue and earnings than Container Store (The). Tractor Supply is trading at a lower price-to-earnings ratio than Container Store (The), indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Container Store (The) and Tractor Supply, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Container Store (The) 1 3 0 0 1.75
Tractor Supply 0 11 8 0 2.42

Container Store (The) currently has a consensus target price of $4.83, suggesting a potential downside of 9.99%. Tractor Supply has a consensus target price of $68.72, suggesting a potential upside of 9.66%. Given Tractor Supply’s stronger consensus rating and higher probable upside, analysts plainly believe Tractor Supply is more favorable than Container Store (The).

Profitability

This table compares Container Store (The) and Tractor Supply’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Container Store (The) 0.59% 6.18% 1.76%
Tractor Supply 6.04% 31.25% 15.32%

Institutional & Insider Ownership

79.3% of Container Store (The) shares are owned by institutional investors. Comparatively, 92.4% of Tractor Supply shares are owned by institutional investors. 65.7% of Container Store (The) shares are owned by insiders. Comparatively, 1.2% of Tractor Supply shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Tractor Supply beats Container Store (The) on 12 of the 16 factors compared between the two stocks.

About Container Store (The)

The Container Store Group, Inc. is a specialty retailer of storage and organization products. The Company’s segments include The Container Store (TCS), Elfa and Corporate/Other. The Company’s TCS segment consists of its retail stores, Website and call center, as well as its installation and organizational services business. The Company’s Elfa segment includes the manufacturing business that produces the elfa brand products that are sold domestically, exclusively through the TCS segment, as well as throughout Europe. Its Swedish subsidiary, Elfa International AB (Elfa), designs and manufactures component-based shelving and drawer systems and made-to-measure sliding doors. It merchandises over 11,000 products in each of its stores and online. Its stores are organized into various lifestyle departments, which include Bath, Box, Closets, Collections, Containers, Custom Closets, Food Storage, Gift Packaging, Hooks, Kitchen, Laundry, Office, Shelving, Storage, Trash and Travel.

About Tractor Supply

Tractor Supply Company is an operator of rural lifestyle retail stores in the United States. The Company is focused on supplying the needs of recreational farmers and ranchers and others, as well as tradesmen and small businesses. It is engaged in the retail sale of products that support the rural lifestyle. The Company operates retail stores under the names Tractor Supply Company, Del’s Feed & Farm Supply and Petsense, and operates Websites under the names TractorSupply.com and Petsense.com. The Company’s selection of merchandise consists of various product categories, including equine, livestock, pet and small animal products; hardware, truck, towing and tool products; seasonal products, including heating, lawn and garden items, power equipment, gifts and toys; work/recreational clothing and footwear, and maintenance products for agricultural and rural use. Its brands include 4health, JobSmart, Bit & Bridle, Paws & Claws, Blue Mountain, Redstone, Dumor, Equistages and Royal Wing.

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