Columbia Sportswear (NASDAQ:COLM) and G-III Apparel Group (NASDAQ:GIII) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.
Risk & Volatility
Columbia Sportswear has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, G-III Apparel Group has a beta of 2.76, meaning that its stock price is 176% more volatile than the S&P 500.
Earnings and Valuation
This table compares Columbia Sportswear and G-III Apparel Group's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Columbia Sportswear | $3.04 billion | 2.30 | $330.49 million | $4.72 | 22.44 |
G-III Apparel Group | $3.16 billion | 0.46 | $143.84 million | $3.19 | 9.33 |
Columbia Sportswear has higher earnings, but lower revenue than G-III Apparel Group. G-III Apparel Group is trading at a lower price-to-earnings ratio than Columbia Sportswear, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Columbia Sportswear and G-III Apparel Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Columbia Sportswear | 4.97% | 7.30% | 4.61% |
G-III Apparel Group | 1.50% | 3.91% | 1.97% |
Institutional & Insider Ownership
40.6% of Columbia Sportswear shares are held by institutional investors. Comparatively, 96.7% of G-III Apparel Group shares are held by institutional investors. 41.2% of Columbia Sportswear shares are held by company insiders. Comparatively, 9.5% of G-III Apparel Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and price targets for Columbia Sportswear and G-III Apparel Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Columbia Sportswear | 0 | 6 | 5 | 0 | 2.45 |
G-III Apparel Group | 1 | 6 | 3 | 0 | 2.20 |
Columbia Sportswear currently has a consensus price target of $99.8889, indicating a potential downside of 5.68%. G-III Apparel Group has a consensus price target of $19.70, indicating a potential downside of 33.83%. Given Columbia Sportswear's stronger consensus rating and higher possible upside, analysts clearly believe Columbia Sportswear is more favorable than G-III Apparel Group.
Summary
Columbia Sportswear beats G-III Apparel Group on 11 of the 14 factors compared between the two stocks.