Reviewing Savers Value Village (NYSE:SVV) and Kohl’s (NYSE:KSS)

Kohl’s (NYSE:KSS) and Savers Value Village (NYSE:SVV) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Volatility & Risk

Kohl’s has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Savers Value Village has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Kohl’s and Savers Value Village, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kohl’s	5	8	1	1	1.87
Savers Value Village	1	3	4	0	2.38

Kohl’s currently has a consensus price target of $16.17, suggesting a potential downside of 3.45%. Savers Value Village has a consensus price target of $14.00, suggesting a potential upside of 45.30%. Given Savers Value Village’s stronger consensus rating and higher probable upside, analysts clearly believe Savers Value Village is more favorable than Kohl’s.

Institutional & Insider Ownership

98.0% of Kohl’s shares are held by institutional investors. Comparatively, 98.8% of Savers Value Village shares are held by institutional investors. 1.5% of Kohl’s shares are held by company insiders. Comparatively, 3.5% of Savers Value Village shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Kohl’s and Savers Value Village”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kohl’s	$15.53 billion	0.12	$272.00 million	$2.29	7.31
Savers Value Village	$1.68 billion	0.89	$22.64 million	$0.16	60.22

Kohl’s has higher revenue and earnings than Savers Value Village. Kohl’s is trading at a lower price-to-earnings ratio than Savers Value Village, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kohl’s and Savers Value Village’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kohl’s	1.75%	6.75%	2.02%
Savers Value Village	1.42%	14.58%	3.12%

Summary

Savers Value Village beats Kohl’s on 9 of the 15 factors compared between the two stocks.

About Kohl’s

Kohl’s Corporation operates as an omnichannel retailer in the United States. It offers branded apparel, footwear, accessories, beauty, and home products through its stores and website. The company provides its products primarily under the brand names of Croft & Barrow, Jumping Beans, SO, Sonoma Goods for Life, and Tek Gear, as well as Food Network, LC Lauren Conrad, Nine West, and Simply Vera Vera Wang. Kohl’s Corporation was founded in 1988 and is headquartered in Menomonee Falls, Wisconsin.

About Savers Value Village

Savers Value Village, Inc. sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Value Village Boutique, Village des Valeurs, Unique, and 2nd Avenue brands. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners and then processes, selects, prices, merchandises, and sells them in its stores. It serves retail and wholesale customers. The company was formerly known as S-Evergreen Holding LLC and changed its name to Savers Value Village, Inc. in January 2022. Savers Value Village, Inc. was founded in 1954 and is based in Bellevue, Washington.