Kate Spade & Co (NYSE: LIZ) and Foot Locker (NYSE:FL) are both cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations for Kate Spade & Co and Foot Locker, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kate Spade & Co 0 0 0 0 N/A
Foot Locker 1 12 11 0 2.42

Foot Locker has a consensus price target of $63.27, indicating a potential upside of 103.95%.

Dividends

Foot Locker pays an annual dividend of $1.24 per share and has a dividend yield of 4.0%. Kate Spade & Co does not pay a dividend. Foot Locker pays out 28.6% of its earnings in the form of a dividend. Kate Spade & Co has raised its dividend for 6 consecutive years.

Profitability

This table compares Kate Spade & Co and Foot Locker’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kate Spade & Co 0.44% 1.11% 0.43%
Foot Locker 7.49% 21.52% 15.50%

Valuation & Earnings

This table compares Kate Spade & Co and Foot Locker’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kate Spade & Co N/A N/A N/A N/A N/A
Foot Locker $7.70 billion 0.50 $1.06 billion $4.34 7.15

Foot Locker has higher revenue and earnings than Kate Spade & Co.

Institutional and Insider Ownership

96.6% of Foot Locker shares are held by institutional investors. 1.7% of Foot Locker shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Foot Locker beats Kate Spade & Co on 8 of the 10 factors compared between the two stocks.

Kate Spade & Co Company Profile

Kate Spade & Company is engaged in the design and marketing of a range of accessories and apparel. It operates through three segments. The KATE SPADE North America segment consists of the Company’s kate spade new york and JACK SPADE brands in North America. The KATE SPADE International segment consists of the Company’s kate spade new york and JACK SPADE brands in international markets, which operates principally in Japan, Asia (excluding Japan), Europe and Latin America). The Adelington Design Group segment primarily consists of exclusive arrangements to supply jewelry for the LIZ CLAIBORNE and MONET brands. In addition, the Adelington Design Group segment serves J.C. Penney Corporation, Inc. (JCPenney) through exclusive supplier agreements for the LIZ CLAIBORNE and MONET jewelry lines. As of December 31, 2016, it operated 98 the United States Specialty Retail Stores; 35 Foreign Specialty Retail Stores; 65 the United States Outlet Stores; 17 Foreign Outlet Stores, and 54 Concessions.

Foot Locker Company Profile

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).

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