Critical Analysis: Tumi (NYSE:TUMI) & Its Rivals

Tumi (NYSE: TUMI) is one of 27 public companies in the “Apparel & Accessories” industry, but how does it compare to its rivals? We will compare Tumi to related businesses based on the strength of its risk, profitability, earnings, institutional ownership, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Tumi and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tumi 0 0 0 0 N/A
Tumi Competitors 266 1309 1929 73 2.51

As a group, “Apparel & Accessories” companies have a potential upside of 13.76%. Given Tumi’s rivals higher probable upside, analysts plainly believe Tumi has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

52.8% of shares of all “Apparel & Accessories” companies are held by institutional investors. 27.4% of shares of all “Apparel & Accessories” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Tumi and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tumi 8.95% 10.52% 8.26%
Tumi Competitors -1,575.39% -11.68% -8.08%

Valuation and Earnings

This table compares Tumi and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Tumi N/A N/A 29.71
Tumi Competitors $3.00 billion $167.09 million 431.95

Tumi’s rivals have higher revenue and earnings than Tumi. Tumi is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Tumi has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Tumi’s rivals have a beta of 0.78, suggesting that their average stock price is 22% less volatile than the S&P 500.

Tumi Company Profile

Tumi Holdings, Inc. (Tumi) offers a line of travel and business products and accessories in multiple categories. The Company operates through four segments: Direct-to-Consumer North America, which sells its products directly to consumers through a network of approximately 150 company-owned retail stores consisting of full-price stores and outlet stores; Direct-to-Consumer International, which sells its products directly to consumers through a network of over 20 company-owned full-price and outlet stores in street venues and select malls in international locations; Indirect-to-Consumer North America, which sells its products to wholesale customers in North America through approximately 800 doors, including specialty luggage retailers, prestige department stores and business-to-business channels, and Indirect-to-Consumer International, which sells its products to international wholesale customers through approximately 1,000 doors.

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