Head-To-Head Analysis: Kontoor Brands (KTB) & The Competition

Kontoor Brands (NYSE:KTB) is one of 38 publicly-traded companies in the “TEXTILE – APPAREL” industry, but how does it compare to its rivals? We will compare Kontoor Brands to related businesses based on the strength of its analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Insider and Institutional Ownership

93.1% of Kontoor Brands shares are owned by institutional investors. Comparatively, 65.8% of shares of all “TEXTILE – APPAREL” companies are owned by institutional investors. 1.7% of Kontoor Brands shares are owned by company insiders. Comparatively, 17.9% of shares of all “TEXTILE – APPAREL” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Kontoor Brands pays an annual dividend of $2.08 per share and has a dividend yield of 3.3%. Kontoor Brands pays out 51.0% of its earnings in the form of a dividend. As a group, “TEXTILE – APPAREL” companies pay a dividend yield of 2.1% and pay out 41.1% of their earnings in the form of a dividend. Kontoor Brands has raised its dividend for 1 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Kontoor Brands and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kontoor Brands	0	1	5	0	2.83
Kontoor Brands Competitors	454	3121	4151	136	2.50

Kontoor Brands currently has a consensus price target of $87.50, suggesting a potential upside of 37.60%. As a group, “TEXTILE – APPAREL” companies have a potential upside of 29.75%. Given Kontoor Brands’ stronger consensus rating and higher possible upside, equities analysts plainly believe Kontoor Brands is more favorable than its rivals.

Earnings and Valuation

This table compares Kontoor Brands and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kontoor Brands	$2.61 billion	$245.80 million	15.59
Kontoor Brands Competitors	$6.37 billion	$620.37 million	8.86

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

Volatility & Risk

Kontoor Brands has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Kontoor Brands’ rivals have a beta of 0.89, indicating that their average share price is 11% less volatile than the S&P 500.

Profitability

This table compares Kontoor Brands and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kontoor Brands	8.82%	71.33%	16.78%
Kontoor Brands Competitors	3.32%	-34.41%	5.65%

Summary

Kontoor Brands beats its rivals on 10 of the 15 factors compared.

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.