Head to Head Analysis: Kontoor Brands (KTB) versus Its Competitors

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

Volatility and Risk

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’ peers have a beta of 0.87, indicating that their average stock price is 13% less volatile than the S&P 500.

Institutional and Insider 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 insiders. Comparatively, 17.9% of shares of all “TEXTILE – APPAREL” companies are owned 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Kontoor Brands and its peers, 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	455	3122	4152	136	2.50

Kontoor Brands currently has a consensus target price 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, research analysts clearly believe Kontoor Brands is more favorable than its peers.

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 increased its dividend for 1 consecutive years.

Earnings and Valuation

This table compares Kontoor Brands and its peers top-line revenue, earnings per share 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’ peers have higher revenue and earnings than Kontoor Brands. Kontoor Brands is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Kontoor Brands and its peers’ 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%

Summary

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

About Kontoor Brands

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.