Head to Head Analysis: Savers Value Village (NYSE:SVV) versus Kontoor Brands (NYSE:KTB)

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

Earnings and Valuation

This table compares Kontoor Brands and Savers Value Village”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kontoor Brands	$2.61 billion	1.48	$245.80 million	$3.88	17.94
Savers Value Village	$1.68 billion	0.97	$22.64 million	$0.14	74.69

Kontoor Brands has higher revenue and earnings than Savers Value Village. Kontoor Brands is trading at a lower price-to-earnings ratio than Savers Value Village, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Kontoor Brands and Savers Value Village, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kontoor Brands	1	3	5	1	2.60
Savers Value Village	1	3	4	1	2.56

Kontoor Brands presently has a consensus price target of $84.67, suggesting a potential upside of 21.64%. Savers Value Village has a consensus price target of $14.43, suggesting a potential upside of 37.99%. Given Savers Value Village’s higher possible upside, analysts plainly believe Savers Value Village is more favorable than Kontoor Brands.

Insider and Institutional Ownership

93.1% of Kontoor Brands shares are held by institutional investors. Comparatively, 98.8% of Savers Value Village shares are held by institutional investors. 1.7% of Kontoor Brands shares are held by insiders. Comparatively, 3.1% of Savers Value Village shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Kontoor Brands has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Savers Value Village has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Profitability

This table compares Kontoor Brands and Savers Value Village’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kontoor Brands	7.68%	63.21%	13.16%
Savers Value Village	1.35%	12.05%	2.62%

Summary

Kontoor Brands beats Savers Value Village on 10 of the 14 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 Savers Value Village

Savers Value Village, Inc. sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Value Village Boutique, Village des Valeurs, Unique, and 2nd Avenue brands. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners and then processes, selects, prices, merchandises, and sells them in its stores. It serves retail and wholesale customers. The company was formerly known as S-Evergreen Holding LLC and changed its name to Savers Value Village, Inc. in January 2022. Savers Value Village, Inc. was founded in 1954 and is based in Bellevue, Washington.