Financial Survey: Kontoor Brands (NYSE:KTB) versus Vince (NYSE:VNCE)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kontoor Brands	7.22%	62.02%	12.73%
Vince	-5.75%	11.37%	2.26%

Volatility & Risk

Kontoor Brands has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Vince has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Insider and Institutional Ownership

93.1% of Kontoor Brands shares are held by institutional investors. Comparatively, 16.1% of Vince shares are held by institutional investors. 1.7% of Kontoor Brands shares are held by insiders. Comparatively, 61.0% of Vince shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Kontoor Brands and Vince, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kontoor Brands	1	3	5	1	2.60
Vince	1	0	1	1	2.67

Kontoor Brands currently has a consensus target price of $91.00, indicating a potential upside of 24.48%. Vince has a consensus target price of $4.50, indicating a potential upside of 73.08%. Given Vince’s stronger consensus rating and higher probable upside, analysts plainly believe Vince is more favorable than Kontoor Brands.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kontoor Brands	$3.15 billion	1.28	$227.45 million	$4.05	18.05
Vince	$296.25 million	0.12	-$19.05 million	($1.47)	-1.77

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

Summary

Kontoor Brands beats Vince on 11 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 Vince

Vince Holding Corp. provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale, Vince Direct-to-Consumer segments. The company offers a range of men's and women's products, such as cashmere sweaters, silk blouses, leather and suede products, and jackets, dresses, skirts, pants, t-shirts, footwear, outerwear, and accessories, as well as woven shirts, core and fashion pants, and blazers under the Vince brand. It sells its products directly to consumers through its branded specialty retail stores and outlet stores, as well as through its vince.com e-commerce platform and subscription business through Vince Unfold, vinceunfold.com; and to department stores and specialty stores. The company was formerly known as Apparel Holding Corp. and changed its name to Vince Holding Corp. in November 2013. The company was founded in 2002 and is headquartered in New York, New York.