Kontoor Brands (KTB) and The Competition Critical Review

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

Valuation and Earnings

This table compares Kontoor Brands and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kontoor Brands	$2.61 billion	$245.80 million	17.64
Kontoor Brands Competitors	$6.37 billion	$620.41 million	7.47

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

Risk and Volatility

Kontoor Brands has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Kontoor Brands’ competitors have a beta of 0.87, indicating that their average stock price is 13% less volatile than the S&P 500.

Insider & Institutional Ownership

93.1% of Kontoor Brands shares are held by institutional investors. Comparatively, 65.8% of shares of all “TEXTILE – APPAREL” companies are held by institutional investors. 1.7% of Kontoor Brands shares are held by company insiders. Comparatively, 17.9% of shares of all “TEXTILE – APPAREL” companies are held 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.

Profitability

This table compares Kontoor Brands and its competitors’ 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	3.32%	-34.41%	5.65%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Kontoor Brands and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kontoor Brands	0	1	5	0	2.83
Kontoor Brands Competitors	455	3122	4152	136	2.50

Kontoor Brands currently has a consensus price target of $87.50, indicating a potential upside of 21.56%. As a group, “TEXTILE – APPAREL” companies have a potential upside of 21.10%. Given Kontoor Brands’ stronger consensus rating and higher possible upside, equities analysts plainly believe Kontoor Brands is more favorable than its competitors.

Dividends

Kontoor Brands pays an annual dividend of $2.08 per share and has a dividend yield of 2.9%. 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 2.0% and pay out 40.9% of their earnings in the form of a dividend. Kontoor Brands has raised its dividend for 1 consecutive years.

Summary

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

Kontoor Brands Company Profile

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.