Comparing Nitches (OTCMKTS:NICH) & Kontoor Brands (NYSE:KTB)
by Danessa Lincoln · The Markets DailyKontoor Brands (NYSE:KTB – Get Free Report) and Nitches (OTCMKTS:NICH – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.
Insider and Institutional Ownership
93.1% of Kontoor Brands shares are owned by institutional investors. 1.7% of Kontoor Brands shares are owned by insiders. Comparatively, 23.2% of Nitches shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
Kontoor Brands has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Nitches has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.
Profitability
This table compares Kontoor Brands and Nitches’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kontoor Brands | 7.68% | 63.21% | 13.16% |
| Nitches | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of current recommendations for Kontoor Brands and Nitches, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kontoor Brands | 1 | 2 | 6 | 1 | 2.70 |
| Nitches | 0 | 0 | 0 | 0 | 0.00 |
Kontoor Brands currently has a consensus target price of $90.25, suggesting a potential upside of 43.23%. Given Kontoor Brands’ stronger consensus rating and higher possible upside, research analysts plainly believe Kontoor Brands is more favorable than Nitches.
Earnings and Valuation
This table compares Kontoor Brands and Nitches”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kontoor Brands | $2.61 billion | 1.34 | $245.80 million | $3.88 | 16.24 |
| Nitches | N/A | N/A | -$2.84 million | N/A | N/A |
Kontoor Brands has higher revenue and earnings than Nitches.
Summary
Kontoor Brands beats Nitches on 10 of the 12 factors compared between the two stocks.
About Kontoor Brands
Kontoor Brands, Inc., a lifestyle apparel company, designs, produces, procures, markets, distributes, and licenses denim, apparel, footwear, and accessories, primarily under the Wrangler and Lee brands. The company operates through two segments: Wrangler and Lee. It licenses and sells apparel under the Rock & Republic brand name. The company sells its products primarily through mass merchants, specialty stores, mid-tier and traditional department stores, company-operated stores, and online. It operates in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions. Kontoor Brands, Inc. was incorporated in 2018 and is headquartered in Greensboro, North Carolina.
About Nitches
Nitches Inc. engages in the production and distribution of household, lifestyle, travel and leisure, sports goods, and clothing items. It also develops NITCHES OVS, an owner verification system (OVS) mobile application that can be used to verify authenticity and ownership of Nitches' luxury products, apparels, and streetwear clothing items. The company sells its products through on-line store on the Nitches website, nitchescorp.com/brands/. Nitches Inc. was formerly known as Beebas Creations Inc. and changed its name to Nitches Inc. in July 1992. The company was founded in 1971 and is based in Las Vegas, California.