Buckle (NYSE: BKE) and Sequential Brands Group (NASDAQ:SQBG) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.
Insider & Institutional Ownership
59.7% of Buckle shares are owned by institutional investors. Comparatively, 50.3% of Sequential Brands Group shares are owned by institutional investors. 41.7% of Buckle shares are owned by insiders. Comparatively, 27.3% of Sequential Brands Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Buckle has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Sequential Brands Group has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.
Earnings & Valuation
This table compares Buckle and Sequential Brands Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Buckle||$974.87 million||1.22||$97.96 million||$1.73||14.05|
|Sequential Brands Group||$155.53 million||0.73||-$820,000.00||($0.38)||-4.76|
Buckle has higher revenue and earnings than Sequential Brands Group. Sequential Brands Group is trading at a lower price-to-earnings ratio than Buckle, indicating that it is currently the more affordable of the two stocks.
This table compares Buckle and Sequential Brands Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sequential Brands Group||-14.35%||2.26%||0.85%|
Buckle pays an annual dividend of $1.00 per share and has a dividend yield of 4.1%. Sequential Brands Group does not pay a dividend. Buckle pays out 57.8% of its earnings in the form of a dividend. Sequential Brands Group has raised its dividend for 3 consecutive years.
This is a breakdown of current ratings and target prices for Buckle and Sequential Brands Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sequential Brands Group||0||4||3||0||2.43|
Buckle currently has a consensus price target of $13.00, suggesting a potential downside of 46.50%. Sequential Brands Group has a consensus price target of $6.92, suggesting a potential upside of 282.14%. Given Sequential Brands Group’s stronger consensus rating and higher probable upside, analysts plainly believe Sequential Brands Group is more favorable than Buckle.
Buckle beats Sequential Brands Group on 12 of the 17 factors compared between the two stocks.
Buckle Company Profile
The Buckle, Inc. is a retailer of casual apparel, footwear and accessories for young men and women. As of January 28, 2017, the Company operated 467 retail stores in 44 states throughout the United States under the names Buckle and The Buckle. The Company markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories and footwear. The Company provides customer services, such as free hemming, free gift-wrapping, easy layaways, the Buckle private label credit card, and a guest loyalty program. The Company offers denims from brands, such as Miss Me, Rock Revival, Big Star Vintage, Buffalo Jeans, KanCan, Flying Monkey and Levi’s. Its other brands include Hurley, Billabong, Affliction, American Fighter, Fast & Furious, Oakley, Fox, Puma, Obey, RVCA, Salvage, 7 Diamonds, Nixon, Amuse Society, Free People, White Crow, Corral, Reef, Kustom, Timberland, UGG, TOMS, SAXX, Stance, Lokai, Ray-Ban, and Fossil.
Sequential Brands Group Company Profile
Sequential Brands Group, Inc. owns a portfolio of consumer brands in the fashion, home, athletic and lifestyle categories. The Company’s portfolio of consumer brands includes Martha Stewart, Emeril Lagasse, Jessica Simpson, Joe’s Jeans, William Rast, Ellen Tracy, Revo, AND1 and Avia. The Company’s brands are licensed for a range of product categories, including apparel, footwear, eyewear, fashion accessories and home goods. The Company licenses brands to both wholesale and direct-to-retail licensees. The Company licenses the Martha Stewart brand to various licensees, including retailers, such as Macy’s, The Home Depot, PetSmart and Staples. The Jessica Simpson Collection is a signature lifestyle concept designed in collaboration with Jessica Simpson, which offers various product categories, including footwear, apparel, fragrance, fashion accessories, maternity apparel, girls clothing and a home line. The Avia brand offers running and activewear products.
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