Financial Contrast: Michael Kors Holdings Limited (KORS) & Urban Outfitters (URBN)

Urban Outfitters (NASDAQ: URBN) and Michael Kors Holdings Limited (NYSE:KORS) are both mid-cap apparel & accessories retailers – nec companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Profitability



This table compares Urban Outfitters and Michael Kors Holdings Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Urban Outfitters 4.92% 13.61% 9.27%
Michael Kors Holdings Limited 12.68% 42.09% 28.42%

Earnings and Valuation

This table compares Urban Outfitters and Michael Kors Holdings Limited’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Urban Outfitters $3.55 billion 0.80 $218.12 million $1.49 17.05
Michael Kors Holdings Limited $4.49 billion 1.85 $552.50 million $3.59 15.24

Michael Kors Holdings Limited has higher revenue and earnings than Urban Outfitters. Michael Kors Holdings Limited is trading at a lower price-to-earnings ratio than Urban Outfitters, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Urban Outfitters has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Michael Kors Holdings Limited has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Urban Outfitters and Michael Kors Holdings Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Urban Outfitters 3 17 6 0 2.12
Michael Kors Holdings Limited 2 19 8 0 2.21

Urban Outfitters currently has a consensus price target of $22.09, suggesting a potential downside of 13.03%. Michael Kors Holdings Limited has a consensus price target of $49.19, suggesting a potential downside of 10.10%. Given Michael Kors Holdings Limited’s stronger consensus rating and higher possible upside, analysts plainly believe Michael Kors Holdings Limited is more favorable than Urban Outfitters.

Insider and Institutional Ownership

87.2% of Urban Outfitters shares are owned by institutional investors. Comparatively, 84.3% of Michael Kors Holdings Limited shares are owned by institutional investors. 26.3% of Urban Outfitters shares are owned by insiders. Comparatively, 6.0% of Michael Kors Holdings Limited shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Michael Kors Holdings Limited beats Urban Outfitters on 10 of the 14 factors compared between the two stocks.

About Urban Outfitters

Urban Outfitters, Inc. is a lifestyle specialty retail company. The Company operates through two segments: Retail and Wholesale. The Company’s Retail segment consists of its Urban Outfitters, Anthropologie, Free People, Terrain and Bhldn brands, whose merchandise is sold to its customers through retail stores, Websites, mobile applications, catalogs and customer contact centers. The Retail segment also includes Vetri Family, which operates restaurants under the names Amis, Alla Spina, Lo Spiedo, Pizzeria Vetri and Osteria. Its Wholesale segment consists of the Free People wholesale division that primarily designs, develops and markets young women’s contemporary casual apparel and shoes through individual and chain specialty stores and department stores. The Company’s Wholesale segment includes Free People-branded tops, bottoms, sweaters, dresses, intimates, shoes and activewear, which are sold through department and specialty stores around the world, and its Free People stores.

About Michael Kors Holdings Limited

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.

Receive News & Ratings for Urban Outfitters Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Urban Outfitters Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply