Buckle, Inc. (The) (NYSE: BKE) and Kate Spade & Co (NYSE:KATE) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Earnings and Valuation

This table compares Buckle, Inc. (The) and Kate Spade & Co’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Buckle, Inc. (The) $974.87 million 0.95 $97.96 million $1.80 10.56
Kate Spade & Co N/A N/A N/A $1.10 16.81

Buckle, Inc. (The) has higher revenue and earnings than Kate Spade & Co. Buckle, Inc. (The) 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 & Risk

Buckle, Inc. (The) has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Kate Spade & Co has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.

Dividends

Buckle, Inc. (The) pays an annual dividend of $1.00 per share and has a dividend yield of 5.3%. Kate Spade & Co 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 raised its dividend for 3 consecutive years.

Insider & Institutional Ownership

61.6% of Buckle, Inc. (The) shares are held by institutional investors. Comparatively, 97.9% of Kate Spade & Co shares are held by institutional investors. 41.7% of Buckle, Inc. (The) shares are held by company insiders. Comparatively, 0.8% of Kate Spade & Co shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Buckle, Inc. (The) and Kate Spade & Co, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Buckle, Inc. (The) 1 0 0 0 1.00
Kate Spade & Co 1 13 1 0 2.00

Buckle, Inc. (The) presently has a consensus price target of $13.00, suggesting a potential downside of 31.58%. Kate Spade & Co has a consensus price target of $20.04, suggesting a potential upside of 8.39%. Given Kate Spade & Co’s stronger consensus rating and higher probable upside, analysts clearly believe Kate Spade & Co is more favorable than Buckle, Inc. (The).

Profitability

This table compares Buckle, Inc. (The) and Kate Spade & Co’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%
Kate Spade & Co 0.44% 1.11% 0.43%

Summary

Buckle, Inc. (The) beats Kate Spade & Co on 8 of the 14 factors compared between the two stocks.

About Buckle, Inc. (The)

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.

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.

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