Financial Contrast: Kontoor Brands (KTB) vs. Its Rivals

Kontoor Brands (NYSE:KTBGet Free Report) is one of 38 public companies in the “TEXTILE – APPAREL” industry, but how does it compare to its rivals? We will compare Kontoor Brands to related companies based on the strength of its valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Risk & Volatility

Kontoor Brands has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Kontoor Brands’ rivals have a beta of 0.89, suggesting that their average stock price is 11% less volatile than the S&P 500.

Profitability

This table compares Kontoor Brands and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kontoor Brands 8.82% 71.33% 16.78%
Kontoor Brands Competitors 3.24% -34.59% 5.51%

Analyst Recommendations

This is a breakdown of recent recommendations for Kontoor Brands and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kontoor Brands 0 1 5 0 2.83
Kontoor Brands Competitors 454 3121 4150 136 2.50

Kontoor Brands presently has a consensus target price of $87.50, indicating a potential upside of 37.82%. As a group, “TEXTILE – APPAREL” companies have a potential upside of 31.19%. Given Kontoor Brands’ stronger consensus rating and higher possible upside, equities analysts plainly believe Kontoor Brands is more favorable than its rivals.

Earnings & Valuation

This table compares Kontoor Brands and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Kontoor Brands $2.61 billion $245.80 million 15.56
Kontoor Brands Competitors $6.37 billion $620.37 million 8.78

Kontoor Brands’ rivals have higher revenue and earnings than Kontoor Brands. Kontoor Brands is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

93.1% of Kontoor Brands shares are owned by institutional investors. Comparatively, 65.8% of shares of all “TEXTILE – APPAREL” companies are owned by institutional investors. 1.7% of Kontoor Brands shares are owned by company insiders. Comparatively, 17.9% of shares of all “TEXTILE – APPAREL” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Kontoor Brands pays an annual dividend of $2.08 per share and has a dividend yield of 3.3%. Kontoor Brands pays out 51.0% of its earnings in the form of a dividend. As a group, “TEXTILE – APPAREL” companies pay a dividend yield of 2.1% and pay out 41.1% of their earnings in the form of a dividend. Kontoor Brands has raised its dividend for 1 consecutive years.

Summary

Kontoor Brands beats its rivals on 10 of the 15 factors compared.

About Kontoor Brands

(Get Free Report)

Kontoor Brands, Inc., a lifestyle apparel company, designs, produces, procures, markets, distributes, and licenses denim, apparel, footwear, and accessories, primarily under the Wrangler and Lee brands. The company operates through two segments: Wrangler and Lee. It licenses and sells apparel under the Rock & Republic brand name. The company sells its products primarily through mass merchants, specialty stores, mid-tier and traditional department stores, company-operated stores, and online. It operates in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions. Kontoor Brands, Inc. was incorporated in 2018 and is headquartered in Greensboro, North Carolina.

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