Buckle (NYSE: BKE) and Lands’ End (NASDAQ:LE) are both small-cap cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Insider & Institutional Ownership

64.6% of Buckle shares are owned by institutional investors. Comparatively, 62.6% of Lands’ End shares are owned by institutional investors. 41.7% of Buckle shares are owned by company insiders. Comparatively, 0.5% of Lands’ End shares are owned by company 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Buckle and Lands’ End, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Buckle 1 1 0 0 1.50
Lands’ End 0 2 0 0 2.00

Buckle presently has a consensus target price of $17.00, indicating a potential upside of 12.58%. Lands’ End has a consensus target price of $15.00, indicating a potential upside of 18.58%. Given Lands’ End’s stronger consensus rating and higher possible upside, analysts plainly believe Lands’ End is more favorable than Buckle.

Dividends

Buckle pays an annual dividend of $1.00 per share and has a dividend yield of 6.6%. Lands’ End does not pay a dividend. Buckle pays out 55.6% of its earnings in the form of a dividend. Lands’ End has raised its dividend for 3 consecutive years.

Profitability

This table compares Buckle and Lands’ End’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Buckle 5.87% 10.55% 7.96%
Lands’ End -8.41% -0.07% -0.02%

Risk and Volatility

Buckle has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Lands’ End has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Earnings and Valuation

This table compares Buckle and Lands’ End’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Buckle $927.07 million 0.79 $167.05 million $1.80 8.39
Lands’ End $1.33 billion 0.30 $39.91 million ($3.49) -3.62

Buckle has higher revenue, but lower earnings than Lands’ End. Lands’ End is trading at a lower price-to-earnings ratio than Buckle, indicating that it is currently the more affordable of the two stocks.

Summary

Buckle beats Lands’ End on 10 of the 15 factors compared between the two stocks.

About Buckle

The Buckle, Inc. is a retailer of casual apparel, footwear and accessories for young men and women. As of January 28, 2017, the Company operated 467 retail stores in 44 states throughout the United States under the names Buckle and The Buckle. The Company markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories and footwear. The Company provides customer services, such as free hemming, free gift-wrapping, easy layaways, the Buckle private label credit card, and a guest loyalty program. The Company offers denims from brands, such as Miss Me, Rock Revival, Big Star Vintage, Buffalo Jeans, KanCan, Flying Monkey and Levi’s. Its other brands include Hurley, Billabong, Affliction, American Fighter, Fast & Furious, Oakley, Fox, Puma, Obey, RVCA, Salvage, 7 Diamonds, Nixon, Amuse Society, Free People, White Crow, Corral, Reef, Kustom, Timberland, UGG, TOMS, SAXX, Stance, Lokai, Ray-Ban, and Fossil.

About Lands’ End

Lands’ End, Inc. (Lands’ End) is a multi-channel retailer of casual clothing, accessories and footwear, as well as home products. The Company operates through two segments: Direct and Retail. The Company offers products through catalogs, online at www.landsend.com. The Direct segment sells products through the Company’s e-commerce Websites, international Websites and direct mail catalogs. The Retail segment sells products and services through Lands’ End Shops at Sears across the United States, the Company’s standalone Lands’ End Inlet stores and international shop-in-shops. The Company’s product categories include Apparel and Non-apparel. The Non-apparel category offers accessories, footwear and home goods. The Company provides embroidery, monogramming, gift wrapping, shipping and other services. In addition, the Company offers sheets and pillowcases, duvet covers and comforters, blankets and throws, mattress pads, towels, rugs and mats, school uniforms and shower curtains.

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