Kate Spade & Co (NYSE: KATE) and Lands’ End (NASDAQ:LE) are both cyclical consumer goods & services companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Earnings and Valuation

This table compares Kate Spade & Co and Lands’ End’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kate Spade & Co N/A N/A N/A $1.11 16.66
Lands’ End $1.34 billion 0.32 $39.65 million ($3.55) -3.72

Lands’ End has higher revenue and earnings than Kate Spade & Co. Lands’ End is trading at a lower price-to-earnings ratio than Kate Spade & Co, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Kate Spade & Co has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, Lands’ End has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Profitability

This table compares Kate Spade & Co and Lands’ End’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kate Spade & Co 0.44% 1.11% 0.43%
Lands’ End -8.48% -0.73% -0.19%

Insider and Institutional Ownership

97.9% of Kate Spade & Co shares are held by institutional investors. Comparatively, 60.5% of Lands’ End shares are held by institutional investors. 0.8% of Kate Spade & Co shares are held by insiders. Comparatively, 0.5% of Lands’ End shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Kate Spade & Co and Lands’ End, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kate Spade & Co 1 13 1 0 2.00
Lands’ End 0 1 0 0 2.00

Kate Spade & Co presently has a consensus target price of $20.04, suggesting a potential upside of 8.39%. Lands’ End has a consensus target price of $15.00, suggesting a potential upside of 13.64%. Given Lands’ End’s higher probable upside, analysts clearly believe Lands’ End is more favorable than Kate Spade & Co.

Summary

Kate Spade & Co beats Lands’ End on 8 of the 10 factors compared between the two stocks.

About Kate Spade & Co

Kate Spade & Company is engaged in the design and marketing of a range of accessories and apparel. It operates through three segments. The KATE SPADE North America segment consists of the Company’s kate spade new york and JACK SPADE brands in North America. The KATE SPADE International segment consists of the Company’s kate spade new york and JACK SPADE brands in international markets, which operates principally in Japan, Asia (excluding Japan), Europe and Latin America). The Adelington Design Group segment primarily consists of exclusive arrangements to supply jewelry for the LIZ CLAIBORNE and MONET brands. In addition, the Adelington Design Group segment serves J.C. Penney Corporation, Inc. (JCPenney) through exclusive supplier agreements for the LIZ CLAIBORNE and MONET jewelry lines. As of December 31, 2016, it operated 98 the United States Specialty Retail Stores; 35 Foreign Specialty Retail Stores; 65 the United States Outlet Stores; 17 Foreign Outlet Stores, and 54 Concessions.

About Lands’ End

Lands’ End, Inc. (Lands’ End) is a multi-channel retailer of casual clothing, accessories and footwear, as well as home products. The Company operates through two segments: Direct and Retail. The Company offers products through catalogs, online at www.landsend.com. The Direct segment sells products through the Company’s e-commerce Websites, international Websites and direct mail catalogs. The Retail segment sells products and services through Lands’ End Shops at Sears across the United States, the Company’s standalone Lands’ End Inlet stores and international shop-in-shops. The Company’s product categories include Apparel and Non-apparel. The Non-apparel category offers accessories, footwear and home goods. The Company provides embroidery, monogramming, gift wrapping, shipping and other services. In addition, the Company offers sheets and pillowcases, duvet covers and comforters, blankets and throws, mattress pads, towels, rugs and mats, school uniforms and shower curtains.

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