Reviewing Michael Kors Holdings Limited (KORS) & The Competition

Michael Kors Holdings Limited (NYSE: KORS) is one of 37 public companies in the “Apparel & Accessories Retailers” industry, but how does it weigh in compared to its peers? We will compare Michael Kors Holdings Limited to related businesses based on the strength of its valuation, risk, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Insider & Institutional Ownership

83.4% of Michael Kors Holdings Limited shares are held by institutional investors. Comparatively, 75.2% of shares of all “Apparel & Accessories Retailers” companies are held by institutional investors. 6.0% of Michael Kors Holdings Limited shares are held by company insiders. Comparatively, 16.5% of shares of all “Apparel & Accessories Retailers” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Michael Kors Holdings Limited has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500. Comparatively, Michael Kors Holdings Limited’s peers have a beta of 0.78, indicating that their average stock price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Michael Kors Holdings Limited and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Michael Kors Holdings Limited 3 18 6 0 2.11
Michael Kors Holdings Limited Competitors 511 2961 2888 84 2.39

Michael Kors Holdings Limited currently has a consensus price target of $44.92, indicating a potential downside of 5.73%. As a group, “Apparel & Accessories Retailers” companies have a potential upside of 4.69%. Given Michael Kors Holdings Limited’s peers stronger consensus rating and higher probable upside, analysts clearly believe Michael Kors Holdings Limited has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Michael Kors Holdings Limited and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Michael Kors Holdings Limited $4.46 billion $1.07 billion 14.80
Michael Kors Holdings Limited Competitors $3.36 billion $448.52 million 21.10

Michael Kors Holdings Limited has higher revenue and earnings than its peers. Michael Kors Holdings Limited is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Michael Kors Holdings Limited and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Michael Kors Holdings Limited 11.91% 40.26% 26.12%
Michael Kors Holdings Limited Competitors 0.80% -2.79% 3.26%

Summary

Michael Kors Holdings Limited peers beat Michael Kors Holdings Limited on 7 of the 13 factors compared.

Michael Kors Holdings Limited Company Profile

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.

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