L Brands (LTD) and Foot Locker (FL) Critical Comparison
Foot Locker (NYSE: FL) and L Brands (NYSE:LTD) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitabiliy, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Foot Locker pays an annual dividend of $1.24 per share and has a dividend yield of 2.4%. L Brands does not pay a dividend. Foot Locker pays out 25.4% of its earnings in the form of a dividend. L Brands has increased its dividend for 6 consecutive years.
This table compares Foot Locker and L Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations for Foot Locker and L Brands, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Foot Locker currently has a consensus target price of $73.99, indicating a potential upside of 42.18%. Given Foot Locker’s higher possible upside, analysts plainly believe Foot Locker is more favorable than L Brands.
Institutional & Insider Ownership
96.5% of Foot Locker shares are owned by institutional investors. 2.9% of Foot Locker shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Foot Locker and L Brands’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Foot Locker||$7.78 billion||0.88||$1.13 billion||$4.89||10.64|
Foot Locker has higher revenue and earnings than L Brands.
Foot Locker beats L Brands on 10 of the 12 factors compared between the two stocks.
About Foot Locker
Foot Locker, Inc. is a retailer of shoes and apparel. The Company operates through two segments: Athletic Stores and Direct-to-Customers. The Company is an athletic footwear and apparel retailer, which include businesses, such as include Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep and SIX:02. The Direct-to-Customers segment is multi-branded and sells directly to customers through Internet and mobile sites and catalogs. The Direct-to-Customers segment operates the Websites for eastbay.com, final-score.com, eastbayteamsales.com and sp24.com. Additionally, this segment includes the Websites, both desktop and mobile, aligned with the brand names of its store banners (footlocker.com, ladyfootlocker.com, six02.com kidsfootlocker.com, champssports.com, footaction.com, footlocker.ca, footlocker.eu, runnerspoint.com and sidestep-shoes.com).
About L Brands
L Brands, Inc. operates specialty retail business. The Company is focused on women’s intimate and other apparel, personal care, beauty and home fragrance categories. Its segments include Victoria’s Secret, Bath & Body Works, and Victoria’s Secret and Bath & Body Works International. It sells its merchandise through company-owned specialty retail stores in the United States, Canada, the United Kingdom and Greater China, which are mall-based; through Websites, and through international franchise, license and wholesale partners. It operates in the retail brands, which include Victoria’s Secret, PINK, Bath & Body Works and La Senza. La Senza is a specialty retailer of women’s intimate apparel. It sells its La Senza products at over 120 La Senza stores in Canada. Henri Bendel sells handbags, jewelry and other accessory products through New York and 28 other stores. Mast Global is a merchandise sourcing and production function serving the Company and its international partners.
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