Buckle, Inc. (The) (NYSE: BKE) and Michael Kors Holdings Limited (NYSE:KORS) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.
Insider & Institutional Ownership
59.7% of Buckle, Inc. (The) shares are owned by institutional investors. Comparatively, 84.1% of Michael Kors Holdings Limited shares are owned by institutional investors. 41.7% of Buckle, Inc. (The) shares are owned by insiders. Comparatively, 6.0% of Michael Kors Holdings Limited shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Buckle, Inc. (The) and Michael Kors Holdings Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Buckle, Inc. (The)||9.40%||19.96%||15.04%|
|Michael Kors Holdings Limited||11.91%||40.26%||26.12%|
Buckle, Inc. (The) pays an annual dividend of $1.00 per share and has a dividend yield of 5.8%. Michael Kors Holdings Limited does not pay a dividend. Buckle, Inc. (The) pays out 55.6% of its earnings in the form of a dividend. Buckle, Inc. (The) has increased its dividend for 3 consecutive years.
This is a breakdown of recent recommendations and price targets for Buckle, Inc. (The) and Michael Kors Holdings Limited, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Buckle, Inc. (The)||1||0||0||0||1.00|
|Michael Kors Holdings Limited||3||17||7||0||2.15|
Buckle, Inc. (The) currently has a consensus target price of $13.00, indicating a potential downside of 24.64%. Michael Kors Holdings Limited has a consensus target price of $44.92, indicating a potential downside of 8.36%. Given Michael Kors Holdings Limited’s stronger consensus rating and higher probable upside, analysts clearly believe Michael Kors Holdings Limited is more favorable than Buckle, Inc. (The).
Volatility and Risk
Buckle, Inc. (The) has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Michael Kors Holdings Limited has a beta of 0.02, indicating that its share price is 98% less volatile than the S&P 500.
Valuation and Earnings
This table compares Buckle, Inc. (The) and Michael Kors Holdings Limited’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Buckle, Inc. (The)||$927.07 million||0.90||$167.12 million||$1.80||9.58|
|Michael Kors Holdings Limited||$4.46 billion||1.67||$1.07 billion||$3.22||15.22|
Michael Kors Holdings Limited has higher revenue and earnings than Buckle, Inc. (The). Buckle, Inc. (The) is trading at a lower price-to-earnings ratio than Michael Kors Holdings Limited, indicating that it is currently the more affordable of the two stocks.
Michael Kors Holdings Limited beats Buckle, Inc. (The) on 13 of the 17 factors compared between the two stocks.
Buckle, Inc. (The) Company Profile
The Buckle, Inc. is a retailer of casual apparel, footwear and accessories for young men and women. As of January 28, 2017, the Company operated 467 retail stores in 44 states throughout the United States under the names Buckle and The Buckle. The Company markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories and footwear. The Company provides customer services, such as free hemming, free gift-wrapping, easy layaways, the Buckle private label credit card, and a guest loyalty program. The Company offers denims from brands, such as Miss Me, Rock Revival, Big Star Vintage, Buffalo Jeans, KanCan, Flying Monkey and Levi’s. Its other brands include Hurley, Billabong, Affliction, American Fighter, Fast & Furious, Oakley, Fox, Puma, Obey, RVCA, Salvage, 7 Diamonds, Nixon, Amuse Society, Free People, White Crow, Corral, Reef, Kustom, Timberland, UGG, TOMS, SAXX, Stance, Lokai, Ray-Ban, and Fossil.
Michael Kors Holdings Limited Company Profile
Michael Kors Holdings Limited is a designer, marketer, distributor and retailer of branded women’s apparel and accessories and men’s apparel bearing the Michael Kors tradename and related trademarks MICHAEL KORS, MICHAEL MICHAEL KORS, and various other related trademarks and logos. The Company operates through three segments: retail, wholesale and licensing. The Retail operations consist of collection stores and lifestyle stores, including concessions and outlet stores, located primarily in the Americas (the United States, Canada and Latin America), Europe and Asia, as well as e-commerce. Wholesale revenues are principally derived from major department and specialty stores located throughout the Americas, Europe and Asia. The Company licenses its trademarks on products, such as fragrances, beauty, eyewear, leather goods, jewelry, watches, coats, men’s suits, swimwear, furs and ties, as well as through geographic licenses.
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