Lakeland Industries (NASDAQ: LAKE) and V.F. Corporation (NYSE:VFC) are both industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

42.4% of Lakeland Industries shares are owned by institutional investors. 8.6% of Lakeland Industries shares are owned by insiders. Comparatively, 1.6% of V.F. Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Lakeland Industries and V.F. Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lakeland Industries 0 0 1 0 3.00
V.F. Corporation 1 15 5 0 2.19

Lakeland Industries currently has a consensus target price of $18.00, indicating a potential upside of 24.57%. V.F. Corporation has a consensus target price of $61.12, indicating a potential downside of 5.84%. Given Lakeland Industries’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Lakeland Industries is more favorable than V.F. Corporation.

Profitability

This table compares Lakeland Industries and V.F. Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lakeland Industries 6.65% 8.27% 7.02%
V.F. Corporation 9.23% 27.44% 12.68%

Earnings and Valuation

This table compares Lakeland Industries and V.F. Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lakeland Industries $90.42 million 1.28 $10.08 million $0.82 17.62
V.F. Corporation $12.01 billion 2.13 $1.87 billion $2.59 25.06

V.F. Corporation has higher revenue and earnings than Lakeland Industries. Lakeland Industries is trading at a lower price-to-earnings ratio than V.F. Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

V.F. Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.6%. Lakeland Industries does not pay a dividend. V.F. Corporation pays out 64.9% of its earnings in the form of a dividend. Lakeland Industries has raised its dividend for 44 consecutive years.

Volatility & Risk

Lakeland Industries has a beta of -0.06, meaning that its stock price is 106% less volatile than the S&P 500. Comparatively, V.F. Corporation has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Summary

V.F. Corporation beats Lakeland Industries on 11 of the 17 factors compared between the two stocks.

About Lakeland Industries

Lakeland Industries, Inc. (Lakeland) manufactures and sells a line of safety garments and accessories for the industrial and public protective clothing market. The Company’s product categories include limited use/disposable protective clothing; high-end chemical protective suits; firefighting, flame resistant personal protective equipment (FR PPE) and heat protective apparel; reusable woven garments; high visibility clothing, and glove and sleeves. The Company’s products are sold by its in-house customer service group, its regional sales managers and independent sales representatives to a network of over 1,200 North American safety and mill supply distributors. These distributors in turn supply end user industrial customers, such as integrated oil, chemical/petrochemical, utilities, automobile, steel, glass, construction, smelting, munition plants, janitorial, pharmaceutical, mortuaries and high technology electronics manufacturers, as well as scientific and medical laboratories.

About V.F. Corporation

V.F. Corporation (VF) is engaged in the design, production, procurement, marketing and distribution of branded lifestyle apparel, footwear and related products. The Company’s segments include Outdoor & Action Sports, Jeanswear, Imagewear and Sportswear. Its Outdoor & Action Sports Coalition is a group of authentic outdoor and activity-based lifestyle brands. Its product offerings include apparel, footwear, equipment, backpacks, luggage and accessories. Its Imagewear coalition consists of the Image business. Its Wrangler brand offers denim, apparel, accessories and footwear through mass merchants, specialty stores and department stores in the United States, VF-operated stores and online at www.wrangler.com. The Sportswear coalition consists of the Nautica and Kipling brand businesses in North America (the Kipling brand outside of North America is managed by the Outdoor & Action Sports coalition).

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