Analyzing Kontoor Brands (NYSE:KTB) and Vince (NYSE:VNCE)

Kontoor Brands (NYSE:KTBGet Free Report) and Vince (NYSE:VNCEGet Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Volatility and Risk

Kontoor Brands has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Vince has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Kontoor Brands and Vince, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kontoor Brands 1 3 5 1 2.60
Vince 1 0 1 1 2.67

Kontoor Brands presently has a consensus target price of $91.00, indicating a potential upside of 18.85%. Vince has a consensus target price of $4.50, indicating a potential upside of 67.91%. Given Vince’s stronger consensus rating and higher probable upside, analysts clearly believe Vince is more favorable than Kontoor Brands.

Earnings and Valuation

This table compares Kontoor Brands and Vince”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kontoor Brands $3.15 billion 1.34 $245.80 million $4.05 18.91
Vince $296.25 million 0.12 -$19.05 million ($1.47) -1.82

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

Profitability

This table compares Kontoor Brands and Vince’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kontoor Brands 7.22% 62.02% 12.73%
Vince -5.75% 11.37% 2.26%

Insider and Institutional Ownership

93.1% of Kontoor Brands shares are held by institutional investors. Comparatively, 16.1% of Vince shares are held by institutional investors. 1.7% of Kontoor Brands shares are held by company insiders. Comparatively, 61.0% of Vince shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Kontoor Brands beats Vince on 11 of the 14 factors compared between the two stocks.

About Kontoor Brands

(Get Free Report)

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.

About Vince

(Get Free Report)

Vince Holding Corp. provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale, Vince Direct-to-Consumer segments. The company offers a range of men's and women's products, such as cashmere sweaters, silk blouses, leather and suede products, and jackets, dresses, skirts, pants, t-shirts, footwear, outerwear, and accessories, as well as woven shirts, core and fashion pants, and blazers under the Vince brand. It sells its products directly to consumers through its branded specialty retail stores and outlet stores, as well as through its vince.com e-commerce platform and subscription business through Vince Unfold, vinceunfold.com; and to department stores and specialty stores. The company was formerly known as Apparel Holding Corp. and changed its name to Vince Holding Corp. in November 2013. The company was founded in 2002 and is headquartered in New York, New York.

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