Head-To-Head Comparison: Francesca’s Holdings Corporation (FRAN) versus Buckle, Inc. (The) (BKE)

Francesca’s Holdings Corporation (NASDAQ: FRAN) and Buckle, Inc. (The) (NYSE:BKE) 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 valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Francesca’s Holdings Corporation and Buckle, Inc. (The), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Francesca’s Holdings Corporation 0 6 2 0 2.25
Buckle, Inc. (The) 1 0 0 0 1.00

Francesca’s Holdings Corporation presently has a consensus price target of $13.86, suggesting a potential upside of 94.35%. Buckle, Inc. (The) has a consensus price target of $13.00, suggesting a potential downside of 20.97%. Given Francesca’s Holdings Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Francesca’s Holdings Corporation is more favorable than Buckle, Inc. (The).

Profitability

This table compares Francesca’s Holdings Corporation and Buckle, Inc. (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Francesca’s Holdings Corporation 7.28% 31.88% 18.83%
Buckle, Inc. (The) 9.40% 19.96% 15.04%

Earnings & Valuation

This table compares Francesca’s Holdings Corporation and Buckle, Inc. (The)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Francesca’s Holdings Corporation $493.21 million 0.53 $78.79 million $0.97 7.35
Buckle, Inc. (The) $927.07 million 0.86 $167.12 million $1.80 9.14

Buckle, Inc. (The) has higher revenue and earnings than Francesca’s Holdings Corporation. Francesca’s Holdings Corporation is trading at a lower price-to-earnings ratio than Buckle, Inc. (The), indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Francesca’s Holdings Corporation has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500. Comparatively, Buckle, Inc. (The) has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Dividends

Buckle, Inc. (The) pays an annual dividend of $1.00 per share and has a dividend yield of 6.1%. Francesca’s Holdings Corporation does not pay a dividend. Buckle, Inc. (The) pays out 55.6% of its earnings in the form of a dividend. Francesca’s Holdings Corporation has raised its dividend for 3 consecutive years.

Insider & Institutional Ownership

59.5% of Buckle, Inc. (The) shares are held by institutional investors. 1.2% of Francesca’s Holdings Corporation shares are held by company insiders. Comparatively, 41.7% of Buckle, Inc. (The) shares are held by company 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.

Summary

Buckle, Inc. (The) beats Francesca’s Holdings Corporation on 10 of the 17 factors compared between the two stocks.

About Francesca’s Holdings Corporation

Francesca’s Holdings Corporation is a holding company. The Company is a specialty retailer, which operates a chain of boutiques across the United States. The Company offers a mix of apparel, jewelry, accessories and gifts. As of January 28, 2017, the Company operated 671 boutiques in 48 states and the District of Columbia, and also served its customers through www.francescas.com, its e-commerce Website. The Company offers apparel, such as dresses, fashion tops, sweaters, cardigans and wraps, bottoms, outerwear and jackets, tees and tanks, and intimates. The Company provides jewelry, such as necklaces, earrings, bracelets and rings. The Company offers accessories, such as handbags, clutches, wallets, shoes, belts, hats, scarves, sunglasses, watches and hair accessories. The Company provides gifts, such as fragrance, candles, bath and body, home accessories, books, wall art, nail polish and miscellaneous items. The Company operates its boutiques under the francesca’s brand.

About Buckle, Inc. (The)

The Buckle, Inc. is a retailer of casual apparel, footwear and accessories for young men and women. As of January 28, 2017, the Company operated 467 retail stores in 44 states throughout the United States under the names Buckle and The Buckle. The Company markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories and footwear. The Company provides customer services, such as free hemming, free gift-wrapping, easy layaways, the Buckle private label credit card, and a guest loyalty program. The Company offers denims from brands, such as Miss Me, Rock Revival, Big Star Vintage, Buffalo Jeans, KanCan, Flying Monkey and Levi’s. Its other brands include Hurley, Billabong, Affliction, American Fighter, Fast & Furious, Oakley, Fox, Puma, Obey, RVCA, Salvage, 7 Diamonds, Nixon, Amuse Society, Free People, White Crow, Corral, Reef, Kustom, Timberland, UGG, TOMS, SAXX, Stance, Lokai, Ray-Ban, and Fossil.

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