Gildan Activewear (NYSE:GIL) and G-III Apparel Group (NASDAQ:GIII) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.
Earnings and Valuation
This table compares Gildan Activewear and G-III Apparel Group's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Gildan Activewear | $2.82 billion | 2.31 | $259.81 million | $1.66 | 19.80 |
G-III Apparel Group | $3.16 billion | 0.48 | $143.84 million | $3.19 | 9.78 |
Gildan Activewear 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 Gildan Activewear, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
76.0% of Gildan Activewear shares are held by institutional investors. Comparatively, 96.7% of G-III Apparel Group shares are held by institutional investors. 9.5% of G-III Apparel Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Gildan Activewear has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500. Comparatively, G-III Apparel Group has a beta of 2.76, suggesting that its share price is 176% more volatile than the S&P 500.
Profitability
This table compares Gildan Activewear and G-III Apparel Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Gildan Activewear | -13.34% | -2.69% | -1.31% |
G-III Apparel Group | 1.50% | 3.91% | 1.97% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Gildan Activewear and G-III Apparel Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Gildan Activewear | 0 | 1 | 6 | 0 | 2.86 |
G-III Apparel Group | 1 | 5 | 3 | 0 | 2.22 |
Gildan Activewear currently has a consensus target price of $28.1429, suggesting a potential downside of 14.36%. G-III Apparel Group has a consensus target price of $26.7778, suggesting a potential downside of 14.17%. Given G-III Apparel Group's higher probable upside, analysts clearly believe G-III Apparel Group is more favorable than Gildan Activewear.
Summary
G-III Apparel Group beats Gildan Activewear on 10 of the 14 factors compared between the two stocks.