Comparing VF (VFC) & Capri (CPRI)

VF (NYSE:VFC) and Capri (NYSE:CPRI) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Analyst Ratings

This is a summary of current ratings and target prices for VF and Capri, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VF 0 8 15 0 2.65
Capri 0 2 4 0 2.67

VF currently has a consensus price target of $91.95, indicating a potential upside of 6.29%. Capri has a consensus price target of $57.60, indicating a potential upside of 23.71%. Given Capri’s stronger consensus rating and higher possible upside, analysts plainly believe Capri is more favorable than VF.

Risk and Volatility

VF has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Capri has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Dividends

VF pays an annual dividend of $2.04 per share and has a dividend yield of 2.4%. Capri does not pay a dividend. VF pays out 68.5% of its earnings in the form of a dividend. VF has raised its dividend for 46 consecutive years.

Profitability

This table compares VF and Capri’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VF 10.11% 38.84% 14.73%
Capri 11.19% 35.44% 16.62%

Institutional and Insider Ownership

83.7% of VF shares are owned by institutional investors. Comparatively, 77.4% of Capri shares are owned by institutional investors. 1.7% of VF shares are owned by insiders. Comparatively, 6.0% of Capri 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.

Valuation and Earnings

This table compares VF and Capri’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VF $11.81 billion 2.90 $252.79 million $2.98 29.03
Capri $4.72 billion 1.49 $591.90 million $4.52 10.30

Capri has lower revenue, but higher earnings than VF. Capri is trading at a lower price-to-earnings ratio than VF, indicating that it is currently the more affordable of the two stocks.

Summary

VF beats Capri on 9 of the 17 factors compared between the two stocks.

VF Company Profile

V.F. Corporation engages in the design, production, procurement, marketing, and distribution of branded lifestyle apparel, footwear, and related products for men, women, and children in the Americas, Europe, and the Asia Pacific. It operates through four segments: Outdoor & Action Sports, Jeanswear, Imagewear, and Other. The company offers outdoor apparel, youth culture/action sports-inspired footwear, footwear and equipment, handbags, luggage, backpacks, totes, accessories, backpacks, surfing-inspired footwear, merino wool socks, and travel accessories under The North Face, Vans, Timberland, Kipling, Napapijri, JanSport, Reef, Smartwool, Eastpak, and Eagle Creek brands. It also provides denim, casual apparel, footwear, and accessories under the Wrangler, Lee, Riders by Lee, Rustler, and Rock & Republic brands. In addition, the company offers occupational, protective occupational, work and work-inspired lifestyle, and outdoor work and hunt apparel, as well as protective work and lifestyle footwear under the Red Kap, Bulwark, Horace Small, Dickies, Workrite, Kodiak, Terra, and Walls brands. It sells its products primarily to specialty stores, department stores, national chains, and mass merchants, as well as sells through direct-to-consumer operations, concession retail stores, and e-commerce sites. V.F. Corporation was founded in 1899 and is headquartered in Greensboro, North Carolina.

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.

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