Head-To-Head Review: Woolworths (OTCMKTS:WLWHY) & Kohl’s (NYSE:KSS)

Woolworths (OTCMKTS:WLWHY) and Kohl’s (NYSE:KSS) are both mid-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Dividends

Woolworths pays an annual dividend of $0.11 per share and has a dividend yield of 2.8%. Kohl’s pays an annual dividend of $2.00 per share and has a dividend yield of 9.2%. Kohl’s pays out -196.1% of its earnings in the form of a dividend. Kohl’s has raised its dividend for 1 consecutive years. Kohl’s is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Woolworths and Kohl’s’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Woolworths	$4.10 billion	0.93	$286.17 million	N/A	N/A
Kohl’s	$18.10 billion	0.13	-$19.00 million	($1.02)	-21.34

Woolworths has higher earnings, but lower revenue than Kohl’s.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Woolworths and Kohl’s, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Woolworths	0	2	0	0	2.00
Kohl’s	3	2	3	0	2.00

Kohl’s has a consensus target price of $26.08, indicating a potential upside of 19.81%. Given Kohl’s’ higher probable upside, analysts plainly believe Kohl’s is more favorable than Woolworths.

Profitability

This table compares Woolworths and Kohl’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Woolworths	N/A	N/A	N/A
Kohl’s	-0.59%	-2.72%	-0.69%

Insider and Institutional Ownership

98.0% of Kohl’s shares are held by institutional investors. 0.6% of Kohl’s shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Woolworths has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Kohl’s has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500.

Summary

Kohl’s beats Woolworths on 9 of the 14 factors compared between the two stocks.

About Woolworths

Woolworths Holdings Limited, through its subsidiaries, operates a chain of retail stores in sub-Saharan Africa, Australia, and New Zealand. It operates through seven segments: Woolworths Fashion, Beauty and Home; Woolworths Food; Woolworths Financial Services; David Jones; Country Road Group; and Treasury. The company provides food, clothing, homeware, beauty, and various lifestyle products, as well as operates department stores. It offers financial products and services, such as store cards, credit cards, personal loans, and other financial products. The company is also involved in the cash and debt management activities. Woolworths Holdings Limited was founded in 1931 and is based in Cape Town, South Africa.

About Kohl’s

Kohl's Corporation operates as a omnichannel retailer in the United States. It offers branded apparel, footwear, accessories, beauty, and home products through its stores and website. The company provides its products primarily under the brand names of Croft & Barrow, Jumping Beans, SO, Sonoma Goods for Life, and Sonoma Goods for Life, as well as Food Network, LC Lauren Conrad, Nine West, and Simply Vera Vera Wang. Kohl's Corporation was founded in 1988 and is headquartered in Menomonee Falls, Wisconsin.