Head to Head Comparison: Buckle (NYSE:BKE) & ON (NYSE:ONON)

Buckle (NYSE:BKE) and ON (NYSE:ONON) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Institutional & Insider Ownership

53.9% of Buckle shares are held by institutional investors. Comparatively, 36.4% of ON shares are held by institutional investors. 39.8% of Buckle shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Buckle and ON, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Buckle	0	2	0	0	2.00
ON	2	3	18	3	2.85

Buckle currently has a consensus target price of $55.00, suggesting a potential upside of 3.82%. ON has a consensus target price of $60.59, suggesting a potential upside of 33.17%. Given ON’s stronger consensus rating and higher possible upside, analysts plainly believe ON is more favorable than Buckle.

Volatility and Risk

Buckle has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, ON has a beta of 2.15, suggesting that its share price is 115% more volatile than the S&P 500.

Profitability

This table compares Buckle and ON’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Buckle	16.13%	44.42%	20.62%
ON	7.45%	14.81%	8.48%

Valuation and Earnings

This table compares Buckle and ON”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Buckle	$1.22 billion	2.23	$195.47 million	$4.08	12.98
ON	$2.63 billion	10.85	$275.23 million	$0.77	59.09

ON has higher revenue and earnings than Buckle. Buckle is trading at a lower price-to-earnings ratio than ON, indicating that it is currently the more affordable of the two stocks.

Summary

ON beats Buckle on 9 of the 15 factors compared between the two stocks.

About Buckle

The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States. It markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear, as well as private label merchandise primarily comprising BKE, Buckle Black, Salvage, Red by BKE, Daytrip, Gimmicks, Gilded Intent, FITZ + EDDI, Willow & Root, Outpost Makers, Departwest, Sterling & Stitch, Reclaim, BKE Vintage, Nova Industries, J.B. Holt, Modish Rebel, Maven Co-op, and Veece. The company provides services, such as hemming, gift-packaging, layaways, guest loyalty program, the Buckle private label credit card, and personalized stylist services, as well as special order system that allows stores to obtain requested merchandise from other company stores or its online order fulfillment center. The Buckle, Inc. also sells its products through its website, buckle.com. The company was formerly known as Mills Clothing, Inc. and changed its name to The Buckle, Inc. in April 1991.The Buckle, Inc. was incorporated in 1948 and is headquartered in Kearney, Nebraska.

About ON

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.