Comparing Tapestry (TPR) & Michael Kors (KORS)

Tapestry (NYSE: TPR) and Michael Kors (NYSE:KORS) are both large-cap retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Profitability

This table compares Tapestry and Michael Kors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tapestry 6.10% 24.12% 10.61%
Michael Kors 11.32% 40.86% 24.94%

Earnings and Valuation

This table compares Tapestry and Michael Kors’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tapestry $4.49 billion 2.82 $591.00 million $2.15 20.43
Michael Kors $4.49 billion 2.24 $552.50 million $4.24 15.60

Tapestry has higher earnings, but lower revenue than Michael Kors. Michael Kors is trading at a lower price-to-earnings ratio than Tapestry, indicating that it is currently the more affordable of the two stocks.

Dividends

Tapestry pays an annual dividend of $1.35 per share and has a dividend yield of 3.1%. Michael Kors does not pay a dividend. Tapestry pays out 62.8% of its earnings in the form of a dividend.

Institutional & Insider Ownership

89.6% of Tapestry shares are held by institutional investors. Comparatively, 80.9% of Michael Kors shares are held by institutional investors. 1.0% of Tapestry shares are held by insiders. Comparatively, 6.0% of Michael Kors shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Tapestry has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Michael Kors has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Tapestry and Michael Kors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tapestry 1 5 23 1 2.80
Michael Kors 1 13 14 0 2.46

Tapestry presently has a consensus price target of $54.37, indicating a potential upside of 23.77%. Michael Kors has a consensus price target of $66.73, indicating a potential upside of 0.86%. Given Tapestry’s stronger consensus rating and higher possible upside, equities analysts clearly believe Tapestry is more favorable than Michael Kors.

Summary

Tapestry beats Michael Kors on 10 of the 17 factors compared between the two stocks.

About Tapestry

Tapestry, Inc. provides luxury accessories and lifestyle brands. It offers handbags, wallets, money pieces, wristlets and cosmetic cases, key rings, and charms, as well as address books, time management accessories, sketchbooks, and portfolios for women; and business cases, computer bags, messenger-style bags, backpacks, totes, wallets, card cases, belts, sunglasses, watches, novelty accessories, and ready-to-wear for men. The company also provides footwear; seasonal lifestyle apparel collections, including outerwear and ready-to-wear, gloves, scarves, and hats; jewelry, such as bracelets, necklaces, rings, and earrings made with sterling silver, leather, and non-precious metals; sunglasses; watches; and fragrances comprising perfume sprays, toilette sprays, purse sprays, and body creams for women. In addition, it offers children's wear, tech and home decor products; and weekend and travel accessories, travel bags, and other lifestyle products. Further, the company licenses rights to market and distribute its eyewear, watches, and fragrances under the Coach brand name. It markets its products to consumers through a network of Coach-operated stores, including Internet in North America; and Coach-operated stores and concession shop-in-shops in Japan, Mainland China, Hong Kong, Macau, Singapore, Taiwan, Malaysia, South Korea, the United Kingdom, France, Ireland, Spain, Portugal, Germany, Italy, Austria, Belgium, the Netherlands, and Switzerland, as well as to wholesale customers and distributors in approximately 55 countries. The company sells its Stuart Weitzman products through department stores; independent third party distributors; and stores, including the Internet. It operates approximately 1,300 stores under the Coach, kate spade new york, and Stuart Weitzman brands. The company was formerly known as Coach, Inc. and changed its name to Tapestry, Inc. in October 2017. Tapestry, Inc. was founded in 1941 and is headquartered in New York, New York.

About Michael Kors

Michael Kors Holdings Limited design, markets, distributes, and retails branded women's apparel and accessories, and men's apparel. The company operates in three segments: Retail, Wholesale, and Licensing. The Retail segment is involved in the sale of women's apparel; men's apparel; accessories, which include handbags and small leather goods, such as wallets; footwear; and licensed products comprising watches, jewelry, fragrances, beauty products, and eyewear. It operates collection stores and lifestyle stores, including concessions and outlet stores. As of April 1, 2017, this segment operated 398 retail stores in the United States, Canada, and Latin America, including concessions; and 429 international retail stores, including concessions in Europe and Asia, as well as e-commerce sites in the United States, Canada, France, Germany, Italy, Spain, Switzerland, the United Kingdom, China, and Japan. The Wholesale segment sells accessories, such as handbags and small leather goods, footwear, and women's and men's apparel to department stores and specialty shops in the United States, Canada, Latin America, Europe, and Asia. The Licensing segment licenses its trademarks on products, such as fragrances, beauty, eyewear, belts, cold weather accessories, jewelry, watches, coats, men's suits, swimwear, socks, furs, and ties, as well as licenses rights to third parties to sell the company's products in various geographical regions, such as Brazil, the Middle East, Eastern Europe, Asia, and Australia. The company sells its products under the names of MICHAEL KORS, MICHAEL MICHAEL KORS, and various other related trademarks and logos. Michael Kors Holdings Limited was founded in 1981 and is based in London, the United Kingdom.

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