PVH (NYSE:PVH) & Kontoor Brands (NYSE:KTB) Critical Analysis

PVH (NYSE:PVH) and Kontoor Brands (NYSE:KTB) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Dividends

PVH pays an annual dividend of $0.15 per share and has a dividend yield of 0.2%. Kontoor Brands does not pay a dividend. PVH pays out 1.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for PVH and Kontoor Brands, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PVH 0 5 13 1 2.79
Kontoor Brands 1 4 3 0 2.25

PVH presently has a consensus price target of $129.44, suggesting a potential upside of 41.79%. Kontoor Brands has a consensus price target of $29.58, suggesting a potential upside of 13.22%. Given PVH’s stronger consensus rating and higher possible upside, equities analysts clearly believe PVH is more favorable than Kontoor Brands.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PVH $9.66 billion 0.71 $746.40 million $9.60 9.51
Kontoor Brands N/A N/A N/A N/A N/A

PVH has higher revenue and earnings than Kontoor Brands.

Insider and Institutional Ownership

95.0% of PVH shares are owned by institutional investors. 1.2% of PVH shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
PVH 6.69% 13.03% 6.11%
Kontoor Brands N/A N/A N/A

Summary

PVH beats Kontoor Brands on 11 of the 12 factors compared between the two stocks.

PVH Company Profile

PVH Corp. operates as an apparel company in North America and internationally. The company operates through six segments: Calvin Klein North America, Calvin Klein International, Tommy Hilfiger North America, Tommy Hilfiger International, Heritage Brands Wholesale, and Heritage Brands Retail. It designs, markets, and retails men's and women's apparel and accessories, including branded dress shirts, dresses, suits, neckwear, sportswear, jeans wear, performance and intimate apparel, underwear, swimwear, swim products, handbags, luggage products, footwear, golf apparel, sleepwear and loungewear, fragrances, cosmetics, skincare products and toiletries, socks and tights, jewelry, watches, outerwear, small leather goods, and furnishings, as well as other related products. The company offers its products under its own brands, such as Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW, Warner's, Olga, Eagle, True&Co., and Geoffrey Beene; and licensed brands comprising Speedo, Kenneth Cole New York, Kenneth Cole Reaction, MICHAEL Michael Kors, Michael Kors Collection, DKNY, and Chaps, as well as various other licensed and private label brands. It also licenses its own brands over various products. The company distributes its products at wholesale in department, chain, and specialty stores, as well as through warehouse clubs, mass market and off-price retailers, and independent retailers; and through company-operated full-price specialty and outlet stores, as well as through digital commerce sites. PVH Corp. was founded in 1881 and is based in New York, New York.

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