Jerash Holdings (US) (NASDAQ:JRSH) and Levi Strauss & Co. (NYSE:LEVI) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.
Earnings and Valuation
This table compares Jerash Holdings (US) and Levi Strauss & Co.'s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Jerash Holdings (US) | $93.02 million | 0.78 | $6.46 million | $0.57 | 11.30 |
| Levi Strauss & Co. | $5.76 billion | 2.09 | $394.61 million | $0.97 | 31.06 |
Levi Strauss & Co. has higher revenue and earnings than Jerash Holdings (US). Jerash Holdings (US) is trading at a lower price-to-earnings ratio than Levi Strauss & Co., indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
4.4% of Jerash Holdings (US) shares are owned by institutional investors. Comparatively, 12.3% of Levi Strauss & Co. shares are owned by institutional investors. 44.6% of Jerash Holdings (US) shares are owned by insiders. Comparatively, 6.5% of Levi Strauss & Co. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings for Jerash Holdings (US) and Levi Strauss & Co., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Jerash Holdings (US) | 0 | 0 | 1 | 0 | 3.00 |
| Levi Strauss & Co. | 0 | 0 | 9 | 0 | 3.00 |
Jerash Holdings (US) currently has a consensus target price of $8.00, indicating a potential upside of 24.22%. Levi Strauss & Co. has a consensus target price of $27.20, indicating a potential downside of 9.72%. Given Jerash Holdings (US)'s higher probable upside, equities analysts plainly believe Jerash Holdings (US) is more favorable than Levi Strauss & Co..
Volatility & Risk
Jerash Holdings (US) has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Levi Strauss & Co. has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.
Profitability
This table compares Jerash Holdings (US) and Levi Strauss & Co.'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Jerash Holdings (US) | 5.49% | 8.45% | 6.97% |
| Levi Strauss & Co. | -1.90% | 7.10% | 1.92% |
Dividends
Jerash Holdings (US) pays an annual dividend of $0.20 per share and has a dividend yield of 3.1%. Levi Strauss & Co. pays an annual dividend of $0.16 per share and has a dividend yield of 0.5%. Jerash Holdings (US) pays out 35.1% of its earnings in the form of a dividend. Levi Strauss & Co. pays out 16.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Jerash Holdings (US) has raised its dividend for 1 consecutive years and Levi Strauss & Co. has raised its dividend for 1 consecutive years.
Summary
Levi Strauss & Co. beats Jerash Holdings (US) on 8 of the 15 factors compared between the two stocks.
