Capri (NYSE:CPRI) versus Burberry Group (OTCMKTS:BURBY) Critical Review

Capri (NYSE:CPRI) and Burberry Group (OTCMKTS:BURBY) are both mid-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Risk and Volatility

Capri has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Burberry Group has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Profitability

This table compares Capri and Burberry Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capri	3.94%	664.22%	4.10%
Burberry Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Capri and Burberry Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capri	$3.47 billion	0.61	$137.00 million	$1.14	16.06
Burberry Group	$3.24 billion	1.79	$28.15 million	N/A	N/A

Capri has higher revenue and earnings than Burberry Group.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Capri and Burberry Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capri	1	8	6	1	2.44
Burberry Group	0	1	0	1	3.00

Capri presently has a consensus price target of $24.79, suggesting a potential upside of 35.42%. Given Capri’s higher probable upside, equities analysts clearly believe Capri is more favorable than Burberry Group.

Institutional & Insider Ownership

84.3% of Capri shares are held by institutional investors. Comparatively, 10.3% of Burberry Group shares are held by institutional investors. 2.3% of Capri shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Capri beats Burberry Group on 10 of the 12 factors compared between the two stocks.

About Capri

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also engages in licensing agreements to the manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.

About Burberry Group

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. The company operates in two segments, Retail/Wholesale and Licensing. It provides womenswear, menswear, childrenswear, beauty, eyewear, shoes, and accessories, as well as leather goods, such as bags. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. It sells its products through Burberry mainline stores, concessions, outlets, digital commerce, Burberry franchisees, department stores, and multi-brand specialty accounts, as well as through Burberry.com website. It operates in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. The company was founded in 1856 and is headquartered in London, the United Kingdom.