Michael Kors (NYSE: KORS) and Talon International (OTCMKTS:TALN) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Valuation and Earnings

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This table compares Michael Kors and Talon International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Michael Kors $4.49 billion 2.10 $552.50 million $3.37 18.43
Talon International $48.26 million 0.16 $990,000.00 $0.01 8.53

Michael Kors has higher revenue and earnings than Talon International. Talon International is trading at a lower price-to-earnings ratio than Michael Kors, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Michael Kors has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Talon International has a beta of 2.35, meaning that its stock price is 135% more volatile than the S&P 500.

Institutional & Insider Ownership

85.5% of Michael Kors shares are owned by institutional investors. Comparatively, 0.0% of Talon International shares are owned by institutional investors. 6.0% of Michael Kors shares are owned by insiders. Comparatively, 20.3% of Talon International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Michael Kors and Talon International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Michael Kors 11.32% 40.86% 24.94%
Talon International 1.10% 6.37% 2.37%

Analyst Ratings

This is a summary of current ratings and recommmendations for Michael Kors and Talon International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Michael Kors 1 15 12 0 2.39
Talon International 0 0 0 0 N/A

Michael Kors presently has a consensus target price of $64.54, suggesting a potential upside of 3.93%. Given Michael Kors’ higher probable upside, equities research analysts plainly believe Michael Kors is more favorable than Talon International.

Summary

Michael Kors beats Talon International on 11 of the 13 factors compared between the two stocks.

Michael Kors 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.

Talon International Company Profile

Talon International, Inc. is a holding company, which specializes in the manufacturing and distribution of a range of apparel components and accessories, including custom zippers, apparel trim components and specialty stretch technology for interlinings. The Company distributes a range of apparel zipper, trim and interlining products to manufacturers of fashion apparel, specialty retailers and mass merchandisers. It operates its business under approximately two product groups, such as Talon Zipper and Talon Trim (which includes its Tekfit stretch technology products). It manufactures and distributes zippers under its Talon brand name to manufacturers for apparel brands and retailers. Talon Trim items include labels, buttons, leather patches, woven labels and others. Under its Tekfit brand, it develops and sells fabric stretch technology that utilizes processes to create stretchable comfort waistbands, shirt collars and inner pocketing panels.

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