Financial Survey: Kontoor Brands (NYSE:KTB) vs. Teijin (OTCMKTS:TINLY)

Kontoor Brands (NYSE:KTB) and Teijin (OTCMKTS:TINLY) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Kontoor Brands and Teijin, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kontoor Brands	0	1	5	0	2.83
Teijin	0	0	0	0	0.00

Kontoor Brands presently has a consensus price target of $87.50, indicating a potential upside of 37.82%. Given Kontoor Brands’ stronger consensus rating and higher probable upside, equities analysts clearly believe Kontoor Brands is more favorable than Teijin.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kontoor Brands	$2.61 billion	1.35	$245.80 million	$4.08	15.56
Teijin	$6.60 billion	0.23	$187.09 million	N/A	N/A

Kontoor Brands has higher earnings, but lower revenue than Teijin.

Dividends

Kontoor Brands pays an annual dividend of $2.08 per share and has a dividend yield of 3.3%. Teijin pays an annual dividend of $0.24 per share and has a dividend yield of 3.1%. Kontoor Brands pays out 51.0% of its earnings in the form of a dividend. Kontoor Brands has raised its dividend for 1 consecutive years. Kontoor Brands is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

93.1% of Kontoor Brands shares are held by institutional investors. 1.7% of Kontoor Brands 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.

Profitability

This table compares Kontoor Brands and Teijin’s 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%
Teijin	N/A	N/A	N/A

Risk and Volatility

Kontoor Brands has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Teijin has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500.

Summary

Kontoor Brands beats Teijin on 13 of the 16 factors compared between the two stocks.

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.

About Teijin

Teijin Limited engages in the fibers, films and sheets, composites, healthcare, and IT businesses worldwide. It offers aramid fibers and polyethylene materials; carbon fibers, composite materials, and oxidized PAN fibers; polycarbonate sheets and films; high-density polyethylene porous films and materials; and microporous films. The company also provides PC resins, polyphenylene sulfide resins, molded parts, and additives; lightweight glass and carbon fiber reinforced composites for automotive applications; and polytrimethylene telephthalate products, artificial leather materials, polyester nanofibers, and recycled polyester fibers. In addition, it offers pharmaceuticals for bone and joint, respiratory, cardiovascular and metabolic, and other diseases; home oxygen therapy, non-invasive positive pressure ventilation, rehabilitation, and sleep disordered breathing related devices, as well as sonic accelerated fracture healing system and community-based integrated care system; and orthopedic implantable devices, and functional food ingredients. Further, the company provides Recopic, a radio-frequency identification technology for inventory management. Additionally, it develops and implements engineering solutions for various issues, such as environmental pollution, energy supply stability, and aging-related workforce population decline. Teijin Limited was incorporated in 1918 and is headquartered in Tokyo, Japan.