Francesca's (FRAN) vs. Kate Spade & Co (KATE) Head-To-Head Analysis

Kate Spade & Co (NYSE: KATE) and Francesca's (NASDAQ:FRAN) are both companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Profitability

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This table compares Kate Spade & Co and Francesca's’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kate Spade & Co 0.44% 1.11% 0.43%
Francesca's 3.30% 16.52% 9.72%

Volatility and Risk

Kate Spade & Co has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, Francesca's has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500.

Institutional & Insider Ownership

97.9% of Kate Spade & Co shares are owned by institutional investors. Comparatively, 99.6% of Francesca's shares are owned by institutional investors. 0.8% of Kate Spade & Co shares are owned by insiders. Comparatively, 1.2% of Francesca's shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Kate Spade & Co and Francesca's, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kate Spade & Co 0 9 0 0 2.00
Francesca's 0 5 1 0 2.17

Kate Spade & Co currently has a consensus price target of $19.50, suggesting a potential upside of 5.46%. Francesca's has a consensus price target of $6.75, suggesting a potential upside of 43.01%. Given Francesca's’ stronger consensus rating and higher probable upside, analysts plainly believe Francesca's is more favorable than Kate Spade & Co.

Valuation & Earnings

This table compares Kate Spade & Co and Francesca's’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kate Spade & Co N/A N/A N/A N/A N/A
Francesca's $471.68 million 0.35 $15.56 million $0.52 9.08

Francesca's has higher revenue and earnings than Kate Spade & Co.

Summary

Francesca's beats Kate Spade & Co on 9 of the 10 factors compared between the two stocks.

Kate Spade & Co Company Profile

Kate Spade & Company is engaged in the design and marketing of a range of accessories and apparel. It operates through three segments. The KATE SPADE North America segment consists of the Company’s kate spade new york and JACK SPADE brands in North America. The KATE SPADE International segment consists of the Company’s kate spade new york and JACK SPADE brands in international markets, which operates principally in Japan, Asia (excluding Japan), Europe and Latin America). The Adelington Design Group segment primarily consists of exclusive arrangements to supply jewelry for the LIZ CLAIBORNE and MONET brands. In addition, the Adelington Design Group segment serves J.C. Penney Corporation, Inc. (JCPenney) through exclusive supplier agreements for the LIZ CLAIBORNE and MONET jewelry lines. As of December 31, 2016, it operated 98 the United States Specialty Retail Stores; 35 Foreign Specialty Retail Stores; 65 the United States Outlet Stores; 17 Foreign Outlet Stores, and 54 Concessions.

Francesca's Company Profile

Francesca’s Holdings Corporation is a holding company. The Company is a specialty retailer, which operates a chain of boutiques across the United States. The Company offers a mix of apparel, jewelry, accessories and gifts. As of January 28, 2017, the Company operated 671 boutiques in 48 states and the District of Columbia, and also served its customers through www.francescas.com, its e-commerce Website. The Company offers apparel, such as dresses, fashion tops, sweaters, cardigans and wraps, bottoms, outerwear and jackets, tees and tanks, and intimates. The Company provides jewelry, such as necklaces, earrings, bracelets and rings. The Company offers accessories, such as handbags, clutches, wallets, shoes, belts, hats, scarves, sunglasses, watches and hair accessories. The Company provides gifts, such as fragrance, candles, bath and body, home accessories, books, wall art, nail polish and miscellaneous items. The Company operates its boutiques under the francesca’s brand.

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