Industria de Diseño Textil (OTCMKTS:IDEXY) and L'Oréal (OTCMKTS:LRLCY) are both large-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.
Volatility & Risk
Industria de Diseño Textil has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, L'Oréal has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.
Institutional & Insider Ownership
0.0% of Industria de Diseño Textil shares are owned by institutional investors. Comparatively, 0.7% of L'Oréal shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
Industria de Diseño Textil pays an annual dividend of $0.15 per share and has a dividend yield of 0.9%. L'Oréal pays an annual dividend of $0.68 per share and has a dividend yield of 0.9%. Industria de Diseño Textil pays out 23.1% of its earnings in the form of a dividend. L'Oréal pays out 54.4% 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.
Earnings and Valuation
This table compares Industria de Diseño Textil and L'Oréal's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Industria de Diseño Textil | $31.68 billion | 3.31 | $4.07 billion | $0.65 | 25.89 |
| L'Oréal | $33.46 billion | 6.12 | $4.20 billion | $1.25 | 58.61 |
L'Oréal has higher revenue and earnings than Industria de Diseño Textil. Industria de Diseño Textil is trading at a lower price-to-earnings ratio than L'Oréal, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Industria de Diseño Textil and L'Oréal, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Industria de Diseño Textil | 2 | 4 | 5 | 0 | 2.27 |
| L'Oréal | 2 | 3 | 8 | 0 | 2.46 |
L'Oréal has a consensus target price of $76.00, indicating a potential upside of 3.74%. Given L'Oréal's stronger consensus rating and higher possible upside, analysts clearly believe L'Oréal is more favorable than Industria de Diseño Textil.
Profitability
This table compares Industria de Diseño Textil and L'Oréal's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Industria de Diseño Textil | 7.18% | 12.74% | 6.67% |
| L'Oréal | N/A | N/A | N/A |
Summary
L'Oréal beats Industria de Diseño Textil on 10 of the 15 factors compared between the two stocks.
