Lands’ End (NASDAQ: LE) and Michael Kors Holdings Limited (NYSE:KORS) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.
This table compares Lands’ End and Michael Kors Holdings Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Michael Kors Holdings Limited||11.91%||40.26%||26.12%|
Earnings & Valuation
This table compares Lands’ End and Michael Kors Holdings Limited’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lands’ End||$1.34 billion||0.31||$39.65 million||($3.55)||-3.70|
|Michael Kors Holdings Limited||$4.46 billion||1.61||$1.07 billion||$3.22||14.75|
Michael Kors Holdings Limited has higher revenue and earnings than Lands’ End. Lands’ End is trading at a lower price-to-earnings ratio than Michael Kors Holdings Limited, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for Lands’ End and Michael Kors Holdings Limited, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Michael Kors Holdings Limited||3||18||6||0||2.11|
Lands’ End presently has a consensus price target of $15.00, indicating a potential upside of 14.07%. Michael Kors Holdings Limited has a consensus price target of $44.92, indicating a potential downside of 5.39%. Given Lands’ End’s higher possible upside, research analysts plainly believe Lands’ End is more favorable than Michael Kors Holdings Limited.
Volatility and Risk
Lands’ End has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, Michael Kors Holdings Limited has a beta of 0.03, meaning that its stock price is 97% less volatile than the S&P 500.
Institutional & Insider Ownership
60.5% of Lands’ End shares are held by institutional investors. Comparatively, 83.4% of Michael Kors Holdings Limited shares are held by institutional investors. 0.5% of Lands’ End shares are held by insiders. Comparatively, 6.0% of Michael Kors Holdings Limited shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Michael Kors Holdings Limited beats Lands’ End on 11 of the 13 factors compared between the two stocks.
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.
About Michael Kors Holdings Limited
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.
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