Francesca’s Holdings Corporation (NASDAQ: FRAN) and Buckle, Inc. (The) (NYSE:BKE) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Profitability

This table compares Francesca’s Holdings Corporation and Buckle, Inc. (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Francesca’s Holdings Corporation 7.28% 31.88% 18.83%
Buckle, Inc. (The) 9.40% 19.96% 15.04%

Dividends

Buckle, Inc. (The) pays an annual dividend of $1.00 per share and has a dividend yield of 6.1%. Francesca’s Holdings Corporation does not pay a dividend. Buckle, Inc. (The) pays out 55.6% of its earnings in the form of a dividend. Francesca’s Holdings Corporation has increased its dividend for 3 consecutive years.

Insider & Institutional Ownership

59.5% of Buckle, Inc. (The) shares are owned by institutional investors. 1.2% of Francesca’s Holdings Corporation shares are owned by insiders. Comparatively, 41.7% of Buckle, Inc. (The) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Francesca’s Holdings Corporation has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500. Comparatively, Buckle, Inc. (The) has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Valuation and Earnings

This table compares Francesca’s Holdings Corporation and Buckle, Inc. (The)’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Francesca’s Holdings Corporation $493.21 million 0.55 $78.79 million $0.97 7.68
Buckle, Inc. (The) $927.07 million 0.85 $167.12 million $1.80 9.08

Buckle, Inc. (The) has higher revenue and earnings than Francesca’s Holdings Corporation. Francesca’s Holdings Corporation is trading at a lower price-to-earnings ratio than Buckle, Inc. (The), indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Francesca’s Holdings Corporation and Buckle, Inc. (The), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Francesca’s Holdings Corporation 0 6 2 0 2.25
Buckle, Inc. (The) 1 0 0 0 1.00

Francesca’s Holdings Corporation currently has a consensus price target of $13.86, suggesting a potential upside of 86.00%. Buckle, Inc. (The) has a consensus price target of $13.00, suggesting a potential downside of 20.49%. Given Francesca’s Holdings Corporation’s stronger consensus rating and higher possible upside, research analysts plainly believe Francesca’s Holdings Corporation is more favorable than Buckle, Inc. (The).

Summary

Buckle, Inc. (The) beats Francesca’s Holdings Corporation on 10 of the 17 factors compared between the two stocks.

Francesca’s Holdings Corporation Company Profile

Francesca’s Holdings Corporation is a holding company. The Company is a specialty retailer, which operates a chain of boutiques across the United States. The Company offers a mix of apparel, jewelry, accessories and gifts. As of January 28, 2017, the Company operated 671 boutiques in 48 states and the District of Columbia, and also served its customers through www.francescas.com, its e-commerce Website. The Company offers apparel, such as dresses, fashion tops, sweaters, cardigans and wraps, bottoms, outerwear and jackets, tees and tanks, and intimates. The Company provides jewelry, such as necklaces, earrings, bracelets and rings. The Company offers accessories, such as handbags, clutches, wallets, shoes, belts, hats, scarves, sunglasses, watches and hair accessories. The Company provides gifts, such as fragrance, candles, bath and body, home accessories, books, wall art, nail polish and miscellaneous items. The Company operates its boutiques under the francesca’s brand.

Buckle, Inc. (The) Company Profile

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.

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