Critical Survey: Capri (CPRI) and Its Competitors

Capri (NYSE:CPRI) is one of 117 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it weigh in compared to its competitors? We will compare Capri to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, institutional ownership, dividends and earnings.

Risk and Volatility

Capri has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Capri’s competitors have a beta of 0.92, indicating that their average share price is 8% less volatile than the S&P 500.

Earnings and Valuation

This table compares Capri and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Capri	$3.47 billion	$137.00 million	11.75
Capri Competitors	$5.68 billion	$471.75 million	24.03

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

Analyst Ratings

This is a breakdown of recent ratings for Capri and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capri	1	9	4	2	2.44
Capri Competitors	1657	7664	10087	365	2.46

Capri presently has a consensus price target of $22.53, indicating a potential upside of 8.36%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 9.90%. Given Capri’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Capri has less favorable growth aspects than its competitors.

Profitability

This table compares Capri and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capri	6.12%	242.96%	7.54%
Capri Competitors	-3.21%	14.02%	2.94%

Institutional and Insider Ownership

84.3% of Capri shares are owned by institutional investors. Comparatively, 54.1% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by institutional investors. 2.6% of Capri shares are owned by company insiders. Comparatively, 16.1% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Capri competitors beat Capri on 7 of the 13 factors compared.

Capri Company Profile

Capri Holdings Limited is a global fashion group focused on designing, marketing and distributing luxury apparel, footwear, handbags, accessories and related products. Its portfolio includes Michael Kors and Jimmy Choo, whose products are sold through company-operated stores, e-commerce platforms and wholesale partners. The company serves customers in markets around the world, including North America, Europe and Asia. Its brands offer a range of products, including ready-to-wear clothing, shoes, bags, watches, eyewear, jewelry and fragrances.