Contrasting Vince (NASDAQ:VNCE) and Kontoor Brands (NYSE:KTB)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kontoor Brands	$3.15 billion	1.18	$227.45 million	$4.05	16.65
Vince	$296.25 million	0.11	-$19.05 million	($1.47)	-1.70

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.

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	-6.20%	8.03%	1.58%

Volatility and 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Kontoor Brands and Vince, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kontoor Brands	1	3	5	1	2.60
Vince	1	1	1	0	2.00

Kontoor Brands presently has a consensus target price of $91.00, suggesting a potential upside of 34.96%. Vince has a consensus target price of $4.50, suggesting a potential upside of 80.00%. Given Vince’s higher probable upside, analysts plainly believe Vince is more favorable than Kontoor Brands.

Institutional & Insider Ownership

93.1% of Kontoor Brands shares are owned by institutional investors. Comparatively, 16.1% of Vince shares are owned by institutional investors. 1.7% of Kontoor Brands shares are owned by insiders. Comparatively, 61.0% of Vince shares are owned 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.

Summary

Kontoor Brands beats Vince on 13 of the 15 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. designs, merchandises, and sells luxury apparel and accessories in the United States and internationally. It operates through three segments: Vince Wholesale, Vince Direct-to-Consumer, and Rebecca Taylor and Parker. The company offers a range of women’s products, such as cashmere sweaters, silk blouses, leather and suede leggings and jackets, dresses, skirts, denims, pants, t-shirts, footwear, outerwear, and accessories; and men’s products comprising t-shirts, knit and woven tops, sweaters, denims, pants, blazers, footwear, and outerwear under the Vince brand. It also offers occasion-forward dresses, suiting, silk blouses, leather and tweed jackets, outerwear, jumpsuits, cotton dresses and blouses, denim, sweaters, pants, skirts and knit, and woven tops under the Rebecca Taylor and Parker brands. The company 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 wholesale department stores and specialty stores. As of January 30, 2021, it operated 62 Vince stores, including 47 company-operated full-price retail stores and 15 company-operated outlets. The company was formerly known as Apparel Holding Corp. and changed its name to Vince Holding Corp. in November 2013. Vince Holding Corp. was founded in 2002 and is headquartered in New York, New York.