Critical Review: Puma (OTCMKTS:PUMSY) & Kontoor Brands (NYSE:KTB)

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

Valuation & Earnings

This table compares Kontoor Brands and Puma”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kontoor Brands	$3.15 billion	1.42	$227.45 million	$4.79	17.13
Puma	N/A	N/A	N/A	N/A	N/A

Kontoor Brands has higher revenue and earnings than Puma.

Analyst Ratings

This is a summary of current ratings and recommmendations for Kontoor Brands and Puma, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kontoor Brands	1	3	7	1	2.67
Puma	0	4	3	0	2.43

Kontoor Brands currently has a consensus price target of $95.00, suggesting a potential upside of 15.81%. Given Kontoor Brands’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Kontoor Brands is more favorable than Puma.

Insider and Institutional Ownership

93.1% of Kontoor Brands shares are held by institutional investors. 1.8% of Kontoor Brands shares are held by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kontoor Brands	8.21%	59.71%	12.94%
Puma	N/A	N/A	N/A

Summary

Kontoor Brands beats Puma on 10 of the 10 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 Puma

PUMA SE, together with its subsidiaries, engages in the development and sale of athletic footwear, apparel, and accessories in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company provides sports lifestyle products for football, handball, rugby, cricket, volleyball, track and field, motorsports, golf, and basketball. It issues licenses to independent partners to design, develop, manufacture, and sell watches, glasses, safety shoes, workwear, and gaming accessories. The company sells its products under the PUMA and Cobra Golf brands through retail stores, factory outlets, and online stores. The company was formerly known as PUMA AG and changed its name to PUMA SE in July 2011. PUMA SE was founded in 1919 and is headquartered in Herzogenaurach, Germany.