Contrasting Capri (NYSE:CPRI) & Stage Stores (OTCMKTS:SSINQ)

Capri (NYSE:CPRI) and Stage Stores (OTCMKTS:SSINQ) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Earnings and Valuation

This table compares Capri and Stage Stores”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capri	$4.44 billion	0.53	-$1.18 billion	($4.26)	-4.68
Stage Stores	N/A	N/A	N/A	N/A	N/A

Stage Stores has lower revenue, but higher earnings than Capri.

Institutional & Insider Ownership

84.3% of Capri shares are held by institutional investors. 2.3% of Capri shares are held by insiders. Comparatively, 11.6% of Stage Stores shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Capri and Stage Stores, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capri	1	7	6	1	2.47
Stage Stores	0	0	0	0	0.00

Capri currently has a consensus target price of $26.46, suggesting a potential upside of 32.76%. Given Capri’s stronger consensus rating and higher possible upside, equities analysts plainly believe Capri is more favorable than Stage Stores.

Profitability

This table compares Capri and Stage Stores’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capri	-13.57%	-430.23%	-8.70%
Stage Stores	N/A	N/A	N/A

Summary

Capri beats Stage Stores on 6 of the 10 factors compared between the two stocks.

About Capri

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also engages in licensing agreements to the manufacture and sale of watches, jewelry, eyewear, and fragrances. 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 headquartered in London, the United Kingdom.

About Stage Stores

Stage Stores, Inc. operates specialty department stores primarily in small towns and rural communities in the United States. The company sells moderately priced and brand name apparel, accessories, cosmetics, footwear, and home goods through its department stores, off-price stores, and e-commerce Website, as well as through private label credit card and loyalty programs. As of September 17, 2019, it operated 625 BEALLS, GOODY'S, PALAIS ROYAL, PEEBLES, and STAGE specialty department stores; and 158 GORDMANS off-price stores. The company was founded in 1988 and is headquartered in Houston, Texas. On May 10, 2020, Stage Stores, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The plan was later approved as Chapter 11 liquidation on August 14, 2020.