Head to Head Analysis: Genesco (NYSE:GCO) & Levi Strauss & Co. (NYSE:LEVI)

Levi Strauss & Co. (NYSE:LEVI) and Genesco (NYSE:GCO) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Risk & Volatility

Levi Strauss & Co. has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Genesco has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500.

Earnings & Valuation

This table compares Levi Strauss & Co. and Genesco”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Levi Strauss & Co.	$6.36 billion	1.31	$210.60 million	$1.52	13.98
Genesco	$2.33 billion	0.16	-$18.89 million	($0.18)	-188.85

Levi Strauss & Co. has higher revenue and earnings than Genesco. Genesco is trading at a lower price-to-earnings ratio than Levi Strauss & Co., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Levi Strauss & Co. and Genesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Levi Strauss & Co.	9.48%	27.92%	8.95%
Genesco	N/A	2.11%	0.78%

Analyst Recommendations

This is a summary of current ratings for Levi Strauss & Co. and Genesco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Levi Strauss & Co.	0	4	11	0	2.73
Genesco	1	3	0	1	2.20

Levi Strauss & Co. currently has a consensus target price of $26.46, suggesting a potential upside of 24.55%. Genesco has a consensus target price of $36.00, suggesting a potential upside of 5.90%. Given Levi Strauss & Co.’s stronger consensus rating and higher possible upside, equities analysts plainly believe Levi Strauss & Co. is more favorable than Genesco.

Institutional & Insider Ownership

69.1% of Levi Strauss & Co. shares are held by institutional investors. Comparatively, 94.5% of Genesco shares are held by institutional investors. 1.3% of Levi Strauss & Co. shares are held by insiders. Comparatively, 23.1% of Genesco shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Levi Strauss & Co. beats Genesco on 11 of the 15 factors compared between the two stocks.

About Levi Strauss & Co.

Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.

About Genesco

Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories in the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children. Its Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear, as well as sells footwear through e-commerce. The Johnston & Murphy Group segment involved in the retail and e-commerce operations; and wholesale distribution of men’s dress and casual footwear, apparel, and accessories, as well as women’s footwear and accessories. Its Genesco Brands Group segment markets footwear under the Levi’s, Dockers, and G.H. Bass brands for men, women, and children, as well as designs and manufactures the STARTER brands footwear. The company operates through Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy brand names; and e-commerce websites, including journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, littleburgundyshoes.com, johnstonmurphy.ca, nashvilleshoewarehouse.com, and dockersshoes.com. Genesco Inc. was incorporated in 1934 and is headquartered in Nashville, Tennessee.