Cherokee (NASDAQ: CHKE) is one of 53 public companies in the “APPAREL” industry, but how does it contrast to its competitors? We will compare Cherokee to similar companies based on the strength of its profitability, dividends, earnings, institutional ownership, risk, analyst recommendations and valuation.

Analyst Recommendations

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This is a breakdown of recent ratings and recommmendations for Cherokee and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cherokee 0 0 3 0 3.00
Cherokee Competitors 458 2911 4100 145 2.52

Cherokee presently has a consensus target price of $7.83, indicating a potential upside of 440.23%. As a group, “APPAREL” companies have a potential upside of 6.02%. Given Cherokee’s stronger consensus rating and higher probable upside, equities analysts clearly believe Cherokee is more favorable than its competitors.

Earnings and Valuation

This table compares Cherokee and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cherokee $40.62 million -$7.92 million -0.82
Cherokee Competitors $3.40 billion $202.61 million -23.35

Cherokee’s competitors have higher revenue and earnings than Cherokee. Cherokee is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Cherokee has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Cherokee’s competitors have a beta of 0.56, meaning that their average share price is 44% less volatile than the S&P 500.

Profitability

This table compares Cherokee and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cherokee -42.20% -0.68% -0.30%
Cherokee Competitors -20.15% -1.18% 2.28%

Insider & Institutional Ownership

63.1% of Cherokee shares are owned by institutional investors. Comparatively, 59.0% of shares of all “APPAREL” companies are owned by institutional investors. 9.2% of Cherokee shares are owned by insiders. Comparatively, 18.3% of shares of all “APPAREL” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

About Cherokee

Cherokee Inc. is a marketer and manager of a portfolio of fashion and lifestyle brands it owns or represents, licensing the Cherokee, Liz Lange, Completely Me by Liz Lange, Hawk, Tony Hawk, Sideout, Carole Little, Everyday California , Flip Flop Shops and ale by alessandra brands and related brands in various consumer product categories and sectors. The Company operates in the segment of marketing and licensing of brand names and trademarks for apparel, footwear and accessories. It is a licensor of style focused lifestyle brands for apparel, footwear, home products and accessories. It performs a range of services, including marketing, solicitation of licensees, contract negotiations and administration and maintenance of license or distribution agreements, among others. It operates in the United States, Canada, Latin America, Asia, the United Kingdom and Europe. Its brands are licensed with retail and wholesale licensees in over 50 countries and approximately 9,000 retail locations.

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