Head to Head Analysis: Capri (CPRI) vs. Michael Kors (KORS)

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Capri (NYSE:CPRI) and Michael Kors (NYSE:KORS) are both mid-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations for Capri and Michael Kors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capri 0 2 3 0 2.60
Michael Kors 0 14 12 0 2.46

Capri currently has a consensus price target of $58.75, indicating a potential upside of 30.24%. Michael Kors has a consensus price target of $71.00, indicating a potential upside of 56.08%. Given Michael Kors’ higher possible upside, analysts clearly believe Michael Kors is more favorable than Capri.

Profitability

This table compares Capri and Michael Kors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capri 11.19% 35.44% 16.62%
Michael Kors 11.57% 36.66% 18.68%

Risk and Volatility

Capri has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Michael Kors has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Institutional & Insider Ownership

89.1% of Capri shares are held by institutional investors. Comparatively, 86.9% of Michael Kors shares are held by institutional investors. 6.0% of Capri shares are held by company insiders. Comparatively, 6.0% of Michael Kors shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Capri and Michael Kors’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Capri $4.72 billion 1.44 $591.90 million $4.52 9.98
Michael Kors $4.72 billion 1.45 $591.90 million $4.52 10.06

Capri is trading at a lower price-to-earnings ratio than Michael Kors, indicating that it is currently the more affordable of the two stocks.

Summary

Michael Kors beats Capri on 7 of the 10 factors compared between the two stocks.

Capri Company Profile

Capri Holdings Limited design, markets, distributes, and retails branded women's and men's apparel and accessories. It operates in four segments: MK Retail, MK Wholesale, MK Licensing, and Jimmy Choo. The MK Retail segment sells women's apparel; handbags and small leather goods; men's apparel; footwear; and licensed products comprising watches, jewelry, fragrances, and beauty and eyewear. It operates collection stores and lifestyle stores, including concessions and outlets. As of March 31, 2018, this segment operated 379 Michael Kors retail stores, including concessions in the United States and Canada, and Latin America; and 450 international retail stores, including concessions in Europe and Asia, as well as e-commerce sites in North America, Canada, Europe, China, Japan, and South Korea. The MK Wholesale segment sells handbags and small leather goods; footwear; and women's and men's apparel to department stores and specialty shops in the Americas, Europe, and Asia. The MK Licensing segment licenses its trademarks to third parties to operate retail stores and/or sell the its products in Brazil, the Middle East, South Africa, Eastern Europe, Asia, and Australia. The Jimmy Choo segment sells luxury footwear, handbags, and small leather goods through directly operated Jimmy Choo stores in North America; Europe, the Middle East, and Africa; and Asia, as well as through Jimmy Choo e-commerce sites. It is also involved in the wholesale distribution activities worldwide; and licensing agreements related to the manufacture and sale of fragrance, sunglasses, and eyewear. As of March 31, 2018, this segment operated 629 wholesale doors. The company sells its products under the names of MICHAEL KORS, MICHAEL MICHAEL KORS, JIMMY CHOO, and other trademarks and logos. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is based in London, the United Kingdom.

Michael Kors Company Profile

Michael Kors Holdings Limited design, markets, distributes, and retails branded women's and men's apparel and accessories. It operates in four segments: MK Retail, MK Wholesale, MK Licensing, and Jimmy Choo. The MK Retail segment sells women's apparel; handbags and small leather goods; men's apparel; footwear; and licensed products comprising watches, jewelry, fragrances, and beauty and eyewear. It operates collection stores and lifestyle stores, including concessions and outlets. As of March 31, 2018, this segment operated 379 Michael Kors retail stores, including concessions in the United States and Canada (North America), and Latin America (the Americas); and 450 international retail stores, including concessions in Europe and Asia, as well as e-commerce sites in North America, Canada, Europe, China, Japan, and South Korea. The MK Wholesale segment sells handbags and small leather goods; footwear; and women's and men's apparel to department stores and specialty shops in the Americas, Europe, and Asia. The MK Licensing segment licenses its trademarks to third parties to operate retail stores and/or sell the its products in Brazil, the Middle East, South Africa, Eastern Europe, Asia, and Australia. The Jimmy Choo segment sells luxury footwear, handbags, and small leather goods through directly operated Jimmy Choo stores in North America; Europe, the Middle East, and Africa; and Asia, as well as through Jimmy Choo e-commerce sites. It is also involved in the wholesale distribution activities to partners, multi-brand department stores, and specialty stores worldwide; and licensing agreements related to the manufacture and sale of fragrance, sunglasses, and eyewear. As of March 31, 2018, this segment operated 629 wholesale doors. The company sells its products under the names of MICHAEL KORS, MICHAEL MICHAEL KORS, JIMMY CHOO, and various other trademarks and logos. Michael Kors Holdings Limited was founded in 1981 and is based in London, the United Kingdom.

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