Critical Analysis: Kate Spade & Co (KATE) & Saks (SKS)

Kate Spade & Co (NYSE: KATE) and Saks (NYSE:SKS) are both cyclical consumer goods & services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.


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This table compares Kate Spade & Co and Saks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kate Spade & Co 0.44% 1.11% 0.43%
Saks N/A N/A N/A

Institutional & Insider Ownership

97.9% of Kate Spade & Co shares are owned by institutional investors. 0.8% of Kate Spade & Co shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Kate Spade & Co and Saks, as provided by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kate Spade & Co 0 9 0 0 2.00
Saks 0 0 0 0 N/A

Kate Spade & Co currently has a consensus target price of $19.50, suggesting a potential upside of 5.46%. Given Kate Spade & Co’s higher possible upside, research analysts plainly believe Kate Spade & Co is more favorable than Saks.

Valuation & Earnings

This table compares Kate Spade & Co and Saks’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kate Spade & Co N/A N/A N/A $1.10 16.81
Saks N/A N/A N/A $0.27 0.93

Saks is trading at a lower price-to-earnings ratio than Kate Spade & Co, indicating that it is currently the more affordable of the two stocks.


Kate Spade & Co beats Saks on 8 of the 8 factors compared between the two stocks.

Kate Spade & Co Company Profile

Kate Spade & Company is engaged in the design and marketing of a range of accessories and apparel. It operates through three segments. The KATE SPADE North America segment consists of the Company’s kate spade new york and JACK SPADE brands in North America. The KATE SPADE International segment consists of the Company’s kate spade new york and JACK SPADE brands in international markets, which operates principally in Japan, Asia (excluding Japan), Europe and Latin America). The Adelington Design Group segment primarily consists of exclusive arrangements to supply jewelry for the LIZ CLAIBORNE and MONET brands. In addition, the Adelington Design Group segment serves J.C. Penney Corporation, Inc. (JCPenney) through exclusive supplier agreements for the LIZ CLAIBORNE and MONET jewelry lines. As of December 31, 2016, it operated 98 the United States Specialty Retail Stores; 35 Foreign Specialty Retail Stores; 65 the United States Outlet Stores; 17 Foreign Outlet Stores, and 54 Concessions.

Saks Company Profile

Saks Incorporated is a department store retailer. The Company, and its subsidiaries, is engaged in the operation of Saks Fifth Avenue (SFA) stores and SFA e-commerce operations (Saks Direct), as well as Saks Fifth Avenue OFF 5TH (OFF 5TH). The Company is an omni-channel luxury retailer offering an assortment of fashion apparel, shoes, accessories, jewelry, cosmetics, and gifts. SFA stores are principally free-standing stores in exclusive shopping destinations or anchor stores in upscale regional malls. Customers may also purchase SFA products online at or by catalog. OFF 5TH stores are primarily located in upscale mixed-use and off-price centers and offer luxury apparel, shoes, and accessories. As of January 28, 2012, the Company operated 46 SFA stores with a total of approximately 5.5 million square feet and 60 OFF 5TH stores with a total of approximately 1.7 million square feet. In November 2013, Hudson’s Bay Company acquired Saks Incorporated.

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