Lands’ End (NASDAQ: LE) and Buckle, Inc. (The) (NYSE:BKE) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.
Analyst Recommendations
This is a breakdown of recent ratings for Lands’ End and Buckle, Inc. (The), as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lands’ End | 0 | 2 | 0 | 0 | 2.00 |
| Buckle, Inc. (The) | 1 | 1 | 0 | 0 | 1.50 |
Lands’ End presently has a consensus target price of $15.00, indicating a potential upside of 26.58%. Buckle, Inc. (The) has a consensus target price of $17.00, indicating a potential upside of 19.72%. Given Lands’ End’s stronger consensus rating and higher possible upside, research analysts clearly believe Lands’ End is more favorable than Buckle, Inc. (The).
Risk and Volatility
Lands’ End has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, Buckle, Inc. (The) has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.
Institutional & Insider Ownership
62.6% of Lands’ End shares are owned by institutional investors. Comparatively, 64.6% of Buckle, Inc. (The) shares are owned by institutional investors. 0.5% of Lands’ End shares are owned by insiders. Comparatively, 41.7% of Buckle, Inc. (The) shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Dividends
Buckle, Inc. (The) pays an annual dividend of $1.00 per share and has a dividend yield of 7.0%. Lands’ End does not pay a dividend. Buckle, Inc. (The) pays out 55.6% of its earnings in the form of a dividend. Buckle, Inc. (The) has raised its dividend for 3 consecutive years.
Profitability
This table compares Lands’ End and Buckle, Inc. (The)’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lands’ End | -8.41% | -0.07% | -0.02% |
| Buckle, Inc. (The) | 9.40% | 19.96% | 15.04% |
Valuation & Earnings
This table compares Lands’ End and Buckle, Inc. (The)’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Lands’ End | $1.33 billion | 0.29 | $39.91 million | ($3.49) | -3.40 |
| Buckle, Inc. (The) | $927.07 million | 0.74 | $167.05 million | $1.80 | 7.89 |
Buckle, Inc. (The) has higher revenue, but lower earnings than Lands’ End. Lands’ End is trading at a lower price-to-earnings ratio than Buckle, Inc. (The), indicating that it is currently the more affordable of the two stocks.
Summary
Buckle, Inc. (The) beats Lands’ End on 11 of the 15 factors compared between the two stocks.
Lands’ End Company Profile
Lands’ End, Inc. (Lands’ End) is a multi-channel retailer of casual clothing, accessories and footwear, as well as home products. The Company operates through two segments: Direct and Retail. The Company offers products through catalogs, online at www.landsend.com. The Direct segment sells products through the Company’s e-commerce Websites, international Websites and direct mail catalogs. The Retail segment sells products and services through Lands’ End Shops at Sears across the United States, the Company’s standalone Lands’ End Inlet stores and international shop-in-shops. The Company’s product categories include Apparel and Non-apparel. The Non-apparel category offers accessories, footwear and home goods. The Company provides embroidery, monogramming, gift wrapping, shipping and other services. In addition, the Company offers sheets and pillowcases, duvet covers and comforters, blankets and throws, mattress pads, towels, rugs and mats, school uniforms and shower curtains.
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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