Hugo Boss (OTCMKTS:BOSSY) and Kontoor Brands (NYSE:KTB) Critical Survey

Kontoor Brands (NYSE:KTB) and Hugo Boss (OTCMKTS:BOSSY) are both mid-cap consumer cyclical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Kontoor Brands and Hugo Boss, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kontoor Brands	0	1	6	0	2.86
Hugo Boss	0	2	1	0	2.33

Kontoor Brands currently has a consensus target price of $78.83, indicating a potential upside of 9.51%. Given Kontoor Brands’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Kontoor Brands is more favorable than Hugo Boss.

Insider & Institutional Ownership

93.1% of Kontoor Brands shares are held by institutional investors. 2.6% of Kontoor Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Kontoor Brands has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Hugo Boss has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Dividends

Kontoor Brands pays an annual dividend of $2.00 per share and has a dividend yield of 2.8%. Hugo Boss pays an annual dividend of $0.19 per share and has a dividend yield of 2.2%. Kontoor Brands pays out 50.6% of its earnings in the form of a dividend. Hugo Boss pays out 23.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings and Valuation

This table compares Kontoor Brands and Hugo Boss’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kontoor Brands	$2.56 billion	1.57	$230.99 million	$3.95	18.23
Hugo Boss	$4.54 billion	0.68	$279.64 million	$0.82	10.69

Hugo Boss has higher revenue and earnings than Kontoor Brands. Hugo Boss is trading at a lower price-to-earnings ratio than Kontoor Brands, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kontoor Brands and Hugo Boss’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kontoor Brands	9.35%	72.43%	16.31%
Hugo Boss	5.27%	17.05%	6.52%

Summary

Kontoor Brands beats Hugo Boss on 12 of the 16 factors compared between the two stocks.

About Kontoor Brands

Kontoor Brands, Inc., a lifestyle apparel company, designs, produces, procures, markets, distributes, and licenses denim, apparel, footwear, and accessories, primarily under the Wrangler and Lee brands. The company operates through two segments: Wrangler and Lee. It licenses and sells apparel under the Rock & Republic brand name. The company sells its products primarily through mass merchants, specialty stores, mid-tier and traditional department stores, company-operated stores, and online. It operates in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions. Kontoor Brands, Inc. was incorporated in 2018 and is headquartered in Greensboro, North Carolina.

About Hugo Boss

Hugo Boss AG, together with its subsidiaries, provides apparels, shoes, and accessories for men and women worldwide. It also offers licensed products comprising of fragrances, eyewear, watches, children’s fashion, equestrian, and cycling. The company markets and sells its products under the BOSS and HUGO brand names through freestanding stores, shop-in-shops, factory outlets, multi-brand stores, and franchise business, as well as online retailers, distribution, and stores. Hugo Boss AG was founded in 1924 and is headquartered in Metzingen, Germany.