Luxury retailers Michael Kors (NYSE:KORS) and Coach (NYSE:COH) are set to trade places. After reporting disappointing business results over the last few quarters, Coach may soon lose its market capitalization advantage over its younger rival for the first time:

COH Market Cap Chart

COH Market Cap data by YCharts.

In the video below, Fool contributor Demitrios Kalogeropoulos explains how the two retailers got to this point. And despite the much cheaper valuation that the market has given Coach, he argues, Michael Kors looks like the better investment here.

Fool contributor Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Coach. The Motley Fool owns shares of Coach. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.