Head-To-Head Survey: Li Ning (OTCMKTS:LNNGY) vs. Buckle (NYSE:BKE)

Li Ning (OTCMKTS:LNNGY) and Buckle (NYSE:BKE) are both mid-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Risk & Volatility

Li Ning has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Buckle has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Valuation and Earnings

This table compares Li Ning and Buckle”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Li Ning	$4.12 billion	1.31	$408.36 million	N/A	N/A
Buckle	$1.30 billion	1.75	$209.74 million	$4.36	10.10

Li Ning has higher revenue and earnings than Buckle.

Dividends

Li Ning pays an annual dividend of $1.58 per share and has a dividend yield of 3.0%. Buckle pays an annual dividend of $1.40 per share and has a dividend yield of 3.2%. Buckle pays out 32.1% of its earnings in the form of a dividend.

Profitability

This table compares Li Ning and Buckle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Li Ning	N/A	N/A	N/A
Buckle	16.85%	47.35%	21.36%

Insider and Institutional Ownership

53.9% of Buckle shares are held by institutional investors. 39.0% of Buckle shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Li Ning and Buckle, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Li Ning	0	1	0	1	3.00
Buckle	0	2	0	0	2.00

Buckle has a consensus target price of $47.00, suggesting a potential upside of 6.74%. Given Buckle’s higher probable upside, analysts clearly believe Buckle is more favorable than Li Ning.

Summary

Buckle beats Li Ning on 9 of the 14 factors compared between the two stocks.

About Li Ning

Li Ning Company Limited, a sports brand company, engages in the research and development, design, manufacture, marketing, distribution, and retail of sporting goods in the People’s Republic of China. The company offers sporting goods, including professional and leisure footwear, apparel, equipment, and accessories under the LI-NING brand. It also develops, manufactures, markets, distributes, and/or sells outdoor sports products under the AIGLE brand; table tennis products under the Double Happiness brand name; fashionable fitness products for dance and yoga under the Danskin brand; and badminton products under the Kason brand name. The company also provides brand licensing, administrative, and property management services. It operates conventional stores, flagship stores, China LI-NING stores, LI-NING 1990 stores, factory outlets, and multi-brand stores under the LI-NING brand. The company was founded in 1990 and is headquartered in Beijing, the People’s Republic of China.

About Buckle

The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States. It markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear, as well as private label merchandise primarily comprising BKE, Buckle Black, Salvage, Red by BKE, Daytrip, Gimmicks, Gilded Intent, FITZ + EDDI, Willow & Root, Outpost Makers, Departwest, Sterling & Stitch, Reclaim, BKE Vintage, Nova Industries, J.B. Holt, Modish Rebel, Maven Co-op, and Veece. The company provides services, such as hemming, gift-packaging, layaways, guest loyalty program, the Buckle private label credit card, and personalized stylist services, as well as special order system that allows stores to obtain requested merchandise from other company stores or its online order fulfillment center. The Buckle, Inc. also sells its products through its website, buckle.com. The company was formerly known as Mills Clothing, Inc. and changed its name to The Buckle, Inc. in April 1991.The Buckle, Inc. was incorporated in 1948 and is headquartered in Kearney, Nebraska.