Comparing K Swiss (KSWS) & Lakeland Industries (LAKE)

K Swiss (NASDAQ: KSWS) and Lakeland Industries (NASDAQ:LAKE) are both small-cap cyclical consumer goods & services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings for K Swiss and Lakeland Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
K Swiss 0 0 0 0 N/A
Lakeland Industries 0 0 1 0 3.00

Lakeland Industries has a consensus target price of $18.00, indicating a potential upside of 26.76%. Given Lakeland Industries’ higher possible upside, analysts clearly believe Lakeland Industries is more favorable than K Swiss.

Profitability

This table compares K Swiss and Lakeland Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
K Swiss N/A N/A N/A
Lakeland Industries 6.92% 8.21% 7.05%

Volatility and Risk

K Swiss has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Lakeland Industries has a beta of -0.13, meaning that its stock price is 113% less volatile than the S&P 500.

Earnings & Valuation

This table compares K Swiss and Lakeland Industries’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
K Swiss N/A N/A N/A ($0.98) -4.84
Lakeland Industries $86.18 million 1.34 $3.89 million $0.84 16.90

Lakeland Industries has higher revenue and earnings than K Swiss. K Swiss is trading at a lower price-to-earnings ratio than Lakeland Industries, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

54.8% of Lakeland Industries shares are held by institutional investors. 8.6% of Lakeland Industries 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.

Summary

Lakeland Industries beats K Swiss on 10 of the 11 factors compared between the two stocks.

About K Swiss

K-Swiss Inc. (K-Swiss) is engaged in designing, developing and marketing an array of footwear, apparel and accessories for athletic, sports and fitness activities and casual wear under the K-Swiss brand. The Company also designs, develops and markets footwear for adventurers for all terrains under the Palladium brand. The Company sells products primarily to footwear stores, pro shops, sporting goods stores and department stores. Internationally, as of December 31, 2011, K-Swiss had the right to market its products in 124 countries through eight international subsidiaries and 29 distributors. During the year ended December 31, 2011, approximately 60%, 21%, 17% and 2% of the Company’s footwear products were manufactured in China, Thailand, Vietnam and Indonesia, respectively. In May 2013, E.Land World Ltd. completed the acquisition of K Swiss Inc in a merger transaction.

About Lakeland Industries

Lakeland Industries, Inc. (Lakeland) manufactures and sells a line of safety garments and accessories for the industrial and public protective clothing market. The Company’s product categories include limited use/disposable protective clothing; high-end chemical protective suits; firefighting, flame resistant personal protective equipment (FR PPE) and heat protective apparel; reusable woven garments; high visibility clothing, and glove and sleeves. The Company’s products are sold by its in-house customer service group, its regional sales managers and independent sales representatives to a network of over 1,200 North American safety and mill supply distributors. These distributors in turn supply end user industrial customers, such as integrated oil, chemical/petrochemical, utilities, automobile, steel, glass, construction, smelting, munition plants, janitorial, pharmaceutical, mortuaries and high technology electronics manufacturers, as well as scientific and medical laboratories.

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