Analyzing Savers Value Village (NYSE:SVV) and Kontoor Brands (NYSE:KTB)

Savers Value Village (NYSE:SVV) and Kontoor Brands (NYSE:KTB) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Valuation and Earnings

This table compares Savers Value Village and Kontoor Brands”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Savers Value Village	$1.54 billion	1.04	$29.03 million	($0.01)	-1,020.50
Kontoor Brands	$2.61 billion	1.47	$245.80 million	$3.88	17.81

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

Analyst Recommendations

This is a summary of current ratings and target prices for Savers Value Village and Kontoor Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Savers Value Village	1	3	4	1	2.56
Kontoor Brands	1	3	5	1	2.60

Savers Value Village currently has a consensus target price of $14.43, suggesting a potential upside of 41.39%. Kontoor Brands has a consensus target price of $84.67, suggesting a potential upside of 22.54%. Given Savers Value Village’s higher probable upside, research analysts plainly believe Savers Value Village is more favorable than Kontoor Brands.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Savers Value Village	-0.11%	9.18%	2.01%
Kontoor Brands	7.68%	63.21%	13.16%

Volatility and Risk

Savers Value Village has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Kontoor Brands has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Insider and Institutional Ownership

98.8% of Savers Value Village shares are owned by institutional investors. Comparatively, 93.1% of Kontoor Brands shares are owned by institutional investors. 3.1% of Savers Value Village shares are owned by company insiders. Comparatively, 1.7% of Kontoor Brands shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Kontoor Brands beats Savers Value Village on 11 of the 14 factors compared between the two stocks.

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.

About Kontoor Brands

Kontoor Brands, Inc., a lifestyle apparel company, designs, produces, procures, markets, distributes, and licenses denim, apparel, footwear, and accessories, primarily under the Wrangler and Lee brands. The company operates through two segments: Wrangler and Lee. It licenses and sells apparel under the Rock & Republic brand name. The company sells its products primarily through mass merchants, specialty stores, mid-tier and traditional department stores, company-operated stores, and online. It operates in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions. Kontoor Brands, Inc. was incorporated in 2018 and is headquartered in Greensboro, North Carolina.