Critical Review: Hanesbrands (HBI) vs. G-III Apparel Group, LTD. (GIII)
Hanesbrands (NYSE: HBI) and G-III Apparel Group, LTD. (NASDAQ:GIII) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitabiliy and valuation.
Insider and Institutional Ownership
93.7% of Hanesbrands shares are held by institutional investors. Comparatively, 94.4% of G-III Apparel Group, LTD. shares are held by institutional investors. 1.1% of Hanesbrands shares are held by company insiders. Comparatively, 9.7% of G-III Apparel Group, LTD. shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Hanesbrands and G-III Apparel Group, LTD.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hanesbrands||$6.36 billion||1.41||$1.04 billion||$1.52||16.20|
|G-III Apparel Group, LTD.||$2.46 billion||0.54||$136.11 million||$0.84||32.63|
Hanesbrands has higher revenue and earnings than G-III Apparel Group, LTD.. Hanesbrands is trading at a lower price-to-earnings ratio than G-III Apparel Group, LTD., indicating that it is currently the more affordable of the two stocks.
Hanesbrands pays an annual dividend of $0.60 per share and has a dividend yield of 2.4%. G-III Apparel Group, LTD. does not pay a dividend. Hanesbrands pays out 39.5% of its earnings in the form of a dividend. G-III Apparel Group, LTD. has raised its dividend for 3 consecutive years.
This table compares Hanesbrands and G-III Apparel Group, LTD.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|G-III Apparel Group, LTD.||1.58%||5.57%||3.44%|
This is a breakdown of current ratings and price targets for Hanesbrands and G-III Apparel Group, LTD., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|G-III Apparel Group, LTD.||0||4||6||0||2.60|
Hanesbrands presently has a consensus target price of $27.80, suggesting a potential upside of 12.92%. G-III Apparel Group, LTD. has a consensus target price of $29.33, suggesting a potential upside of 7.02%. Given Hanesbrands’ stronger consensus rating and higher possible upside, analysts plainly believe Hanesbrands is more favorable than G-III Apparel Group, LTD..
Risk and Volatility
Hanesbrands has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, G-III Apparel Group, LTD. has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.
Hanesbrands beats G-III Apparel Group, LTD. on 12 of the 17 factors compared between the two stocks.
Hanesbrands Company Profile
Hanesbrands Inc. is a marketer of basic innerwear and activewear apparel in the Americas, Europe, Australia and Asia/Pacific under apparel brands, such as Hanes, Champion, Maidenform, DIM, Bali, Playtex, Bonds, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Flexees, Gear for Sports and Berlei. The Company operates through four segments: Innerwear, Activewear, Direct to Consumer and International. The Innerwear segment focuses on core apparel products, such as intimate apparel, men’s underwear, women’s panties, children’s underwear, socks and hosiery. The Company operates in the activewear market through its Champion, Hanes and JMS/Just My Size brands. The Direct to Consumer segment operations include its domestic Company-operated outlet stores and Website operations that sell its branded products directly to consumers in the United States. The International segment includes products that primarily span across the innerwear and activewear segments.
G-III Apparel Group, LTD. Company Profile
G-III Apparel Group, Ltd. designs, manufactures and markets a range of apparel products. The Company operates through two segments: wholesale operations and retail operations. Its apparel products include outerwear, dresses, sportswear, swimwear, women’s suits and women’s performance wear, as well as women’s handbags, footwear, small leather goods, cold weather accessories and luggage. The Company’s owned brands include Donna Karan, DKNY, DKNY Jeans, Vilebrequin, G-III Sports by Carl Banks, Eliza J, Black Rivet and Jessica Howard. It has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld, Kenneth Cole, Cole Haan and Dockers brands. Through its team sports business, it has licenses with the National Football League, National Basketball Association, Major League Baseball and National Hockey League. It also operates retail stores under the Donna Karan, Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein Performance names.
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