The Bon-Ton Stores (BONT) and Kohl's (KSS) Financial Analysis

The Bon-Ton Stores (OTCMKTS: BONT) and Kohl's (NYSE:KSS) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Institutional and Insider Ownership

16.8% of The Bon-Ton Stores shares are owned by institutional investors. 45.7% of The Bon-Ton Stores shares are owned by insiders. Comparatively, 1.2% of Kohl's shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Kohl's pays an annual dividend of $2.20 per share and has a dividend yield of 4.3%. The Bon-Ton Stores does not pay a dividend. Kohl's pays out 58.4% of its earnings in the form of a dividend. The Bon-Ton Stores has increased its dividend for 6 consecutive years.

Profitability

This table compares The Bon-Ton Stores and Kohl's’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Bon-Ton Stores -3.57% N/A -4.98%
Kohl's 3.47% 12.72% 4.78%

Valuation & Earnings

This table compares The Bon-Ton Stores and Kohl's’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Bon-Ton Stores $2.67 billion 0.00 -$63.41 million ($4.60) -0.08
Kohl's $18.69 billion 0.46 $556.00 million $3.77 13.62

Kohl's has higher revenue and earnings than The Bon-Ton Stores. The Bon-Ton Stores is trading at a lower price-to-earnings ratio than Kohl's, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for The Bon-Ton Stores and Kohl's, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Bon-Ton Stores 0 0 0 0 N/A
Kohl's 4 9 6 0 2.11

Kohl's has a consensus price target of $43.09, indicating a potential downside of 16.08%. Given Kohl's’ higher probable upside, analysts clearly believe Kohl's is more favorable than The Bon-Ton Stores.

Volatility & Risk

The Bon-Ton Stores has a beta of 3.13, meaning that its stock price is 213% more volatile than the S&P 500. Comparatively, Kohl's has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.

Summary

Kohl's beats The Bon-Ton Stores on 10 of the 15 factors compared between the two stocks.

The Bon-Ton Stores Company Profile

The Bon-Ton Stores, Inc. is a department store operator. The Company operates through two segments: stores and eCommerce (its Internet Websites). The Company offers a range of brand-name fashion apparel and accessories for women, men and children. It operates approximately 270 stores in over 26 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates, encompassing a total of approximately 25 million square feet. Its nationally distributed brand assortment includes a range of labels in the apparel, accessories, footwear, cosmetics and home furnishings industries, such as Anne Klein, Calvin Klein, Carters, Chaps, Clarks, Clinique, Coach, Estee Lauder, Fossil, Free People, Frye, Jessica Simpson and Vince Camuto. Its private brand portfolio includes Laura Ashley, Ruff Hewn, Relativity and Casa by Victor Alfaro.

Kohl's Company Profile

Kohl’s Corporation (Kohl’s) is an operator of department stores. The Company operates approximately 1,154 Kohl’s department stores, a Website (www.Kohls.com), approximately 12 FILA outlets, and approximately three Off-Aisle clearance centers. The Company’s stores and Website sell moderately-priced private label and national brand apparel, footwear, accessories, beauty and home products. The Company’s Website includes merchandise that is available in its stores, as well as merchandise that is available only online. The Company’s merchandise mix includes both national brands and private brands that are available only at Kohl’s. The Company’s private brands include Apt. 9, Croft & Barrow, Jumping Beans, SO and Sonoma Goods for Life. The Company’s exclusive brands include Food Network, Jennifer Lopez, Marc Anthony, Rock & Republic and Simply Vera Vera Wang.

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