Rocky Brands (NASDAQ: RCKY) and Michael Kors (NYSE:KORS) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.
Institutional and Insider Ownership
58.8% of Rocky Brands shares are owned by institutional investors. Comparatively, 85.5% of Michael Kors shares are owned by institutional investors. 8.5% of Rocky Brands shares are owned by company insiders. Comparatively, 6.0% of Michael Kors shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Rocky Brands pays an annual dividend of $0.44 per share and has a dividend yield of 2.0%. Michael Kors does not pay a dividend. Rocky Brands pays out 34.1% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Rocky Brands and Michael Kors’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rocky Brands||$253.20 million||0.64||$9.58 million||$1.29||17.02|
|Michael Kors||$4.49 billion||2.09||$552.50 million||$3.37||18.32|
Michael Kors has higher revenue and earnings than Rocky Brands. Rocky Brands is trading at a lower price-to-earnings ratio than Michael Kors, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Rocky Brands and Michael Kors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rocky Brands currently has a consensus price target of $16.00, suggesting a potential downside of 27.11%. Michael Kors has a consensus price target of $63.48, suggesting a potential upside of 2.80%. Given Michael Kors’ stronger consensus rating and higher possible upside, analysts clearly believe Michael Kors is more favorable than Rocky Brands.
This table compares Rocky Brands and Michael Kors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Rocky Brands has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, Michael Kors has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500.
Michael Kors beats Rocky Brands on 13 of the 16 factors compared between the two stocks.
About Rocky Brands
Rocky Brands, Inc. is a designer, manufacturer and marketer of footwear and apparel marketed under a portfolio of brand names, including Rocky, Georgia Boot, Durango, Lehigh and the licensed brand Michelin. The Company operates its business through three segments: wholesale, retail and military. In its wholesale segment, the Company distributes its products through a range of distribution channels representing over 10,000 retail store locations in the United States and Canada, as well as in other international markets. Its wholesale channels vary by product line and include sporting goods stores, outdoor retailers, independent shoe retailers, hardware stores, catalogs, mass merchants and uniform stores. In its retail segment, the Company sells its products directly to consumers through its consumer and business direct Websites and its Rocky outlet store. In its military segment, the Company sells footwear under the Rocky label to the United States military.
About Michael Kors
Michael Kors Holdings Limited is a designer, marketer, distributor and retailer of branded women’s apparel and accessories and men’s apparel bearing the Michael Kors tradename and related trademarks MICHAEL KORS, MICHAEL MICHAEL KORS, and various other related trademarks and logos. The Company operates through three segments: retail, wholesale and licensing. The Retail operations consist of collection stores and lifestyle stores, including concessions and outlet stores, located primarily in the Americas (the United States, Canada and Latin America), Europe and Asia, as well as e-commerce. Wholesale revenues are principally derived from major department and specialty stores located throughout the Americas, Europe and Asia. The Company licenses its trademarks on products, such as fragrances, beauty, eyewear, leather goods, jewelry, watches, coats, men’s suits, swimwear, furs and ties, as well as through geographic licenses.
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