Kate Spade & Co (NYSE: LIZ) and Abercrombie & Fitch (NYSE:ANF) are both cyclical consumer goods & services companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Valuation & Earnings

This table compares Kate Spade & Co and Abercrombie & Fitch’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
Abercrombie & Fitch $3.30 billion 0.29 $181.74 million ($0.31) -45.61

Abercrombie & Fitch has higher revenue and earnings than Kate Spade & Co.

Institutional & Insider Ownership

98.2% of Abercrombie & Fitch shares are held by institutional investors. 0.6% of Abercrombie & Fitch shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Kate Spade & Co and Abercrombie & Fitch’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%
Abercrombie & Fitch -0.62% -0.79% -0.42%

Analyst Recommendations

This is a summary of recent ratings and price targets for Kate Spade & Co and Abercrombie & Fitch, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kate Spade & Co 0 0 0 0 N/A
Abercrombie & Fitch 5 13 3 0 1.90

Abercrombie & Fitch has a consensus price target of $12.00, indicating a potential downside of 15.13%.

Dividends

Abercrombie & Fitch pays an annual dividend of $0.80 per share and has a dividend yield of 5.7%. Kate Spade & Co does not pay a dividend. Abercrombie & Fitch pays out -258.1% of its earnings in the form of a dividend.

Summary

Abercrombie & Fitch beats Kate Spade & Co on 6 of the 9 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.

Abercrombie & Fitch Company Profile

Abercrombie & Fitch Co. is a specialty retailer who primarily sells its products through store and direct-to-consumer operations, as well as through various wholesale, franchise and licensing arrangements. The Company operates through two segments: Abercrombie, which includes the Company’s Abercrombie & Fitch and abercrombie kids brands, and Hollister, which includes the Company’s Hollister and Gilly Hicks brands. The Company offers an array of apparel products, including knit tops, woven shirts, graphic t-shirts, fleece, sweaters, jeans, woven pants, shorts, outerwear, dresses, intimates and swimwear, and personal care products and accessories for men, women and kids under the Abercrombie & Fitch, abercrombie kids, Hollister and Gilly Hicks brands. The Company has operations in North America, Europe, Asia and the Middle East. As of January 28, 2017, the Company operated 709 stores in the United States and 189 stores outside of the United States.

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