Buckle, Inc. (The) (NYSE: BKE) and Foot Locker (NYSE:FL) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitabiliy, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current recommendations for Buckle, Inc. (The) and Foot Locker, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Buckle, Inc. (The) 0 2 0 0 2.00
Foot Locker 0 7 15 1 2.74

Buckle, Inc. (The) currently has a consensus target price of $18.50, indicating a potential upside of 11.45%. Foot Locker has a consensus target price of $74.19, indicating a potential upside of 53.23%. Given Foot Locker’s stronger consensus rating and higher probable upside, analysts plainly believe Foot Locker is more favorable than Buckle, Inc. (The).

Dividends

Buckle, Inc. (The) pays an annual dividend of $1.00 per share and has a dividend yield of 6.0%. Foot Locker pays an annual dividend of $1.24 per share and has a dividend yield of 2.6%. Buckle, Inc. (The) pays out 53.2% of its earnings in the form of a dividend. Foot Locker pays out 25.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Buckle, Inc. (The) has raised its dividend for 3 consecutive years and Foot Locker has raised its dividend for 6 consecutive years.

Valuation and Earnings

This table compares Buckle, Inc. (The) and Foot Locker’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Buckle, Inc. (The) $943.58 million 0.85 $174.08 million $1.88 8.83
Foot Locker $7.78 billion 0.82 $1.13 billion $4.89 9.90

Foot Locker has higher revenue and earnings than Buckle, Inc. (The). Buckle, Inc. (The) is trading at a lower price-to-earnings ratio than Foot Locker, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Buckle, Inc. (The) has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Foot Locker has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Profitability

This table compares Buckle, Inc. (The) and Foot Locker’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Buckle, Inc. (The) 9.66% 20.95% 15.68%
Foot Locker 8.39% 23.87% 16.90%

Insider & Institutional Ownership

66.4% of Buckle, Inc. (The) shares are held by institutional investors. Comparatively, 93.7% of Foot Locker shares are held by institutional investors. 41.7% of Buckle, Inc. (The) shares are held by company insiders. Comparatively, 1.7% of Foot Locker shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Foot Locker beats Buckle, Inc. (The) on 13 of the 18 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.

Foot Locker Company Profile

Foot Locker, Inc. is a retailer of shoes and apparel. The Company operates through two segments: Athletic Stores and Direct-to-Customers. The Company is an athletic footwear and apparel retailer, which include businesses, such as include Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep and SIX:02. The Direct-to-Customers segment is multi-branded and sells directly to customers through Internet and mobile sites and catalogs. The Direct-to-Customers segment operates the Websites for eastbay.com, final-score.com, eastbayteamsales.com and sp24.com. Additionally, this segment includes the Websites, both desktop and mobile, aligned with the brand names of its store banners (footlocker.com, ladyfootlocker.com, six02.com kidsfootlocker.com, champssports.com, footaction.com, footlocker.ca, footlocker.eu, runnerspoint.com and sidestep-shoes.com).

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