Financial Analysis: Express (EXPR) & Buckle, Inc. (The) (BKE)

Express (NYSE: EXPR) and Buckle, Inc. (The) (NYSE:BKE) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Dividends

Buckle, Inc. (The) pays an annual dividend of $1.00 per share and has a dividend yield of 6.4%. Express does not pay a dividend. Buckle, Inc. (The) pays out 53.2% of its earnings in the form of a dividend. Express has raised its dividend for 3 consecutive years.

Profitability

This table compares Express and Buckle, Inc. (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Express 1.85% 5.83% 3.04%
Buckle, Inc. (The) 9.66% 20.95% 15.68%

Risk & Volatility

Express has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Buckle, Inc. (The) has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Express and Buckle, Inc. (The), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Express 0 11 2 0 2.15
Buckle, Inc. (The) 1 1 0 0 1.50

Express currently has a consensus price target of $11.05, indicating a potential upside of 75.88%. Buckle, Inc. (The) has a consensus price target of $18.00, indicating a potential upside of 15.38%. Given Express’ stronger consensus rating and higher possible upside, research analysts clearly believe Express is more favorable than Buckle, Inc. (The).

Institutional & Insider Ownership

96.5% of Express shares are owned by institutional investors. Comparatively, 66.5% of Buckle, Inc. (The) shares are owned by institutional investors. 2.6% of Express shares are owned by insiders. Comparatively, 41.7% of Buckle, Inc. (The) shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Express and Buckle, Inc. (The)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Express $2.16 billion 0.23 $161.73 million $0.51 12.31
Buckle, Inc. (The) $943.58 million 0.80 $174.08 million $1.88 8.30

Buckle, Inc. (The) has higher revenue, but lower earnings than Express. Buckle, Inc. (The) is trading at a lower price-to-earnings ratio than Express, indicating that it is currently the more affordable of the two stocks.

Summary

Express beats Buckle, Inc. (The) on 9 of the 17 factors compared between the two stocks.

Express Company Profile

Express, Inc. is a specialty apparel and accessories retailer offering both women’s and men’s merchandise. The Company targets women and men between 20 and 30 years old. It offers an assortment of fashionable apparel and accessories to address fashion needs across multiple aspects of lifestyles, including work, casual, jeanswear and going-out occasions. It is engaged in the operation of its brick-and-mortar retail and outlet stores, e-commerce operations and franchise operations. It sells its products through its e-commerce Website, www.express.com and its mobile application, and has franchise agreements with franchisees that operate Express locations in Latin America. It operated 656 stores across the United States, in Canada and in Puerto Rico, including 104 factory outlet stores, as of January 28, 2017. Its products are created by its in-house design team. Its portfolio of apparel products includes brands, such as Portofino shirt, Editor pant and 1MX shirt.

Buckle, Inc. (The) 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.

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