Head to Head Review: Jerash Holdings (US) (NASDAQ:JRSH) versus Kontoor Brands (NYSE:KTB)

Jerash Holdings (US) (NASDAQ:JRSH) and Kontoor Brands (NYSE:KTB) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Institutional and Insider Ownership

3.4% of Jerash Holdings (US) shares are held by institutional investors. Comparatively, 93.1% of Kontoor Brands shares are held by institutional investors. 42.7% of Jerash Holdings (US) shares are held by company insiders. Comparatively, 1.7% of Kontoor Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Jerash Holdings (US) has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Kontoor Brands has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Jerash Holdings (US) and Kontoor Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jerash Holdings (US)	0	1	1	0	2.50
Kontoor Brands	0	2	7	1	2.90

Jerash Holdings (US) presently has a consensus price target of $4.00, suggesting a potential upside of 21.95%. Kontoor Brands has a consensus price target of $95.38, suggesting a potential upside of 13.42%. Given Jerash Holdings (US)’s higher probable upside, analysts clearly believe Jerash Holdings (US) is more favorable than Kontoor Brands.

Dividends

Jerash Holdings (US) pays an annual dividend of $0.20 per share and has a dividend yield of 6.1%. Kontoor Brands pays an annual dividend of $2.08 per share and has a dividend yield of 2.5%. Jerash Holdings (US) pays out 285.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kontoor Brands pays out 46.4% of its earnings in the form of a dividend. Kontoor Brands has increased its dividend for 1 consecutive years.

Profitability

This table compares Jerash Holdings (US) and Kontoor Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jerash Holdings (US)	0.57%	1.31%	1.02%
Kontoor Brands	9.48%	68.76%	15.02%

Earnings & Valuation

This table compares Jerash Holdings (US) and Kontoor Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jerash Holdings (US)	$145.81 million	0.29	-$850,000.00	$0.07	46.86
Kontoor Brands	$2.61 billion	1.79	$245.80 million	$4.48	18.77

Kontoor Brands has higher revenue and earnings than Jerash Holdings (US). Kontoor Brands is trading at a lower price-to-earnings ratio than Jerash Holdings (US), indicating that it is currently the more affordable of the two stocks.

Summary

Kontoor Brands beats Jerash Holdings (US) on 14 of the 18 factors compared between the two stocks.

About Jerash Holdings (US)

Jerash Holdings (US), Inc., through its subsidiaries, manufactures and exports customized and ready-made sport and outerwear. The company offers t-shirts; jackets and pullover; pants and shorts; crew neck, polo shirts, and tank tops made from knitted fabric, as well as personal protective equipment. It serves various brand-name retailers in the United States, Hong Kong, Jordan, and internationally. The company was incorporated in 2016 and is headquartered in Fairfield, New Jersey.

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.