Contrasting Kontoor Brands (KTB) and Its Peers

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

Analyst Ratings

This is a summary of current recommendations and price targets for Kontoor Brands and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kontoor Brands	0	1	5	0	2.83
Kontoor Brands Competitors	454	3121	4150	136	2.50

Kontoor Brands presently has a consensus price target of $87.50, suggesting a potential upside of 37.82%. As a group, “TEXTILE – APPAREL” companies have a potential upside of 31.19%. Given Kontoor Brands’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Kontoor Brands is more favorable than its peers.

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 increased its dividend for 1 consecutive years.

Profitability

This table compares Kontoor Brands and its peers’ 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	3.24%	-34.59%	5.51%

Insider & Institutional Ownership

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

Risk & Volatility

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’ peers have a beta of 0.89, indicating that their average share price is 11% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Kontoor Brands	$2.61 billion	$245.80 million	15.56
Kontoor Brands Competitors	$6.37 billion	$620.37 million	8.78

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

Summary

Kontoor Brands beats its peers 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.