Comparing Iconix Brand Group (ICON) and Lakeland Industries (NASDAQ:LAKE)

Iconix Brand Group (NASDAQ: ICON) and Lakeland Industries (NASDAQ:LAKE) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Earnings and Valuation

This table compares Iconix Brand Group and Lakeland Industries’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Iconix Brand Group $352.95 million 0.92 $156.87 million ($4.42) -1.29
Lakeland Industries $88.78 million 1.24 $10.64 million $0.82 16.71

Iconix Brand Group has higher revenue and earnings than Lakeland Industries. Iconix Brand Group is trading at a lower price-to-earnings ratio than Lakeland Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Iconix Brand Group and Lakeland Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Iconix Brand Group 0 2 2 0 2.50
Lakeland Industries 0 0 1 0 3.00

Iconix Brand Group presently has a consensus target price of $10.17, suggesting a potential upside of 78.68%. Lakeland Industries has a consensus target price of $18.00, suggesting a potential upside of 31.39%. Given Iconix Brand Group’s higher probable upside, equities analysts clearly believe Iconix Brand Group is more favorable than Lakeland Industries.

Profitability

This table compares Iconix Brand Group and Lakeland Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Iconix Brand Group -82.22% 10.38% 3.02%
Lakeland Industries 6.65% 8.27% 7.02%

Insider and Institutional Ownership

82.9% of Iconix Brand Group shares are held by institutional investors. Comparatively, 42.4% of Lakeland Industries shares are held by institutional investors. 1.3% of Iconix Brand Group shares are held by insiders. Comparatively, 8.6% of Lakeland Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Iconix Brand Group has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, Lakeland Industries has a beta of -0.1, meaning that its stock price is 110% less volatile than the S&P 500.

About Iconix Brand Group

Iconix Brand Group, Inc. is a brand management company. As of December 31, 2016, the Company owned a portfolio of over 30 global consumer brands across women’s, men’s, and home categories. The Company operates through segments: men’s, women’s, home and international. The Company’s brand portfolio includes brands, such as Candie’s, Bongo, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific/OP, Danskin/Danskin Now, Rocawear/Roc Nation, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Ecko Unltd/Mark Ecko Cut & Sew, Zoo York, Umbro, Lee Cooper and Artful Dodger, and interests in Material Girl, Ed Hardy, Truth or Dare, Modern Amusement, Buffalo, Nick Graham Hydraulic and PONY brands. It operates in various geographic regions, including the United States, Japan and Other (which principally represent Latin America and Europe).

About Lakeland Industries

Lakeland Industries, Inc. (Lakeland) manufactures and sells a line of safety garments and accessories for the industrial and public protective clothing market. The Company’s product categories include limited use/disposable protective clothing; high-end chemical protective suits; firefighting, flame resistant personal protective equipment (FR PPE) and heat protective apparel; reusable woven garments; high visibility clothing, and glove and sleeves. The Company’s products are sold by its in-house customer service group, its regional sales managers and independent sales representatives to a network of over 1,200 North American safety and mill supply distributors. These distributors in turn supply end user industrial customers, such as integrated oil, chemical/petrochemical, utilities, automobile, steel, glass, construction, smelting, munition plants, janitorial, pharmaceutical, mortuaries and high technology electronics manufacturers, as well as scientific and medical laboratories.

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