FBC (OTCMKTS:FBCD) & Buckle (NYSE:BKE) Critical Survey

FBC (OTCMKTS:FBCD) and Buckle (NYSE:BKE) are both consumer cyclical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for FBC and Buckle, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FBC	0	0	0	0	N/A
Buckle	1	0	0	0	1.00

Buckle has a consensus price target of $34.00, indicating a potential downside of 8.50%. Given Buckle’s higher probable upside, analysts clearly believe Buckle is more favorable than FBC.

Profitability

This table compares FBC and Buckle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FBC	N/A	N/A	N/A
Buckle	17.44%	50.88%	24.98%

Insider & Institutional Ownership

8.6% of FBC shares are owned by institutional investors. Comparatively, 53.9% of Buckle shares are owned by institutional investors. 68.4% of FBC shares are owned by insiders. Comparatively, 39.8% of Buckle shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares FBC and Buckle’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FBC	N/A	N/A	N/A	-0.20	0.00
Buckle	$1.26 billion	1.50	$219.92 million	$4.41	8.43

Buckle has higher revenue and earnings than FBC. FBC is trading at a lower price-to-earnings ratio than Buckle, indicating that it is currently the more affordable of the two stocks.

Summary

Buckle beats FBC on 8 of the 9 factors compared between the two stocks.

About FBC

FBC Holding, Inc. markets and sells streetwear clothing, headwear, and accessories for high school students in the United States. It offers shirts, jackets, hoodies, crewnecks, sweatpants, hats, and beanies under the FormRunner Apparel brand name. The company sells its product through 2 retail locations located in Scottsdale, Arizona, as well as through the online store FormRunnerApparel.com. FBC Holding, Inc. is based in Scottsdale, Arizona.

About Buckle

The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States. It markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear, as well as private label merchandise primarily comprising BKE, Buckle Black, Salvage, Red by BKE, Daytrip, Gimmicks, Gilded Intent, FITZ + EDDI, Willow & Root, Outpost Makers, Departwest, Sterling & Stitch, Reclaim, BKE Vintage, Nova Industries, J.B. Holt, Modish Rebel, Maven Co-op, and Veece. The company provides services, such as hemming, gift-packaging, layaways, guest loyalty program, the Buckle private label credit card, and personalized stylist services, as well as special order system that allows stores to obtain requested merchandise from other company stores or its online order fulfillment center. The Buckle, Inc. also sells its products through its website, buckle.com. The company was formerly known as Mills Clothing, Inc. and changed its name to The Buckle, Inc. in April 1991.The Buckle, Inc. was incorporated in 1948 and is headquartered in Kearney, Nebraska.