Head-To-Head Survey: Kate Spade & Co (LIZ) vs. Michael Kors Holdings Limited (KORS)

Kate Spade & Co (NYSE: LIZ) and Michael Kors Holdings Limited (NYSE:KORS) are both mid-cap apparel & accessories retailers – nec companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Earnings and Valuation

This table compares Kate Spade & Co and Michael Kors Holdings Limited’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Kate Spade & Co N/A N/A N/A $1.10 20.19
Michael Kors Holdings Limited $4.49 billion 1.85 $552.50 million $3.59 15.24

Michael Kors Holdings Limited has higher revenue and earnings than Kate Spade & Co. Michael Kors Holdings Limited is trading at a lower price-to-earnings ratio than Kate Spade & Co, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kate Spade & Co and Michael Kors Holdings Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kate Spade & Co 0.44% 1.11% 0.43%
Michael Kors Holdings Limited 12.68% 42.09% 28.42%

Institutional & Insider Ownership

85.2% of Michael Kors Holdings Limited shares are owned by institutional investors. 6.0% of Michael Kors Holdings Limited shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Kate Spade & Co has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, Michael Kors Holdings Limited has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Kate Spade & Co and Michael Kors Holdings Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kate Spade & Co 0 0 0 0 N/A
Michael Kors Holdings Limited 2 18 8 0 2.21

Michael Kors Holdings Limited has a consensus price target of $49.38, suggesting a potential downside of 9.73%. Given Michael Kors Holdings Limited’s higher probable upside, analysts clearly believe Michael Kors Holdings Limited is more favorable than Kate Spade & Co.

Summary

Michael Kors Holdings Limited beats Kate Spade & Co on 9 of the 10 factors compared between the two stocks.

About Kate Spade & Co

Kate Spade & Company is engaged in the design and marketing of a range of accessories and apparel. It operates through three segments. The KATE SPADE North America segment consists of the Company’s kate spade new york and JACK SPADE brands in North America. The KATE SPADE International segment consists of the Company’s kate spade new york and JACK SPADE brands in international markets, which operates principally in Japan, Asia (excluding Japan), Europe and Latin America). The Adelington Design Group segment primarily consists of exclusive arrangements to supply jewelry for the LIZ CLAIBORNE and MONET brands. In addition, the Adelington Design Group segment serves J.C. Penney Corporation, Inc. (JCPenney) through exclusive supplier agreements for the LIZ CLAIBORNE and MONET jewelry lines. As of December 31, 2016, it operated 98 the United States Specialty Retail Stores; 35 Foreign Specialty Retail Stores; 65 the United States Outlet Stores; 17 Foreign Outlet Stores, and 54 Concessions.

About Michael Kors Holdings Limited

Michael Kors Holdings Limited is a designer, marketer, distributor and retailer of branded women’s apparel and accessories and men’s apparel bearing the Michael Kors tradename and related trademarks MICHAEL KORS, MICHAEL MICHAEL KORS, and various other related trademarks and logos. The Company operates through three segments: retail, wholesale and licensing. The Retail operations consist of collection stores and lifestyle stores, including concessions and outlet stores, located primarily in the Americas (the United States, Canada and Latin America), Europe and Asia, as well as e-commerce. Wholesale revenues are principally derived from major department and specialty stores located throughout the Americas, Europe and Asia. The Company licenses its trademarks on products, such as fragrances, beauty, eyewear, leather goods, jewelry, watches, coats, men’s suits, swimwear, furs and ties, as well as through geographic licenses.

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