Hanesbrands (NYSE: HBI) is one of 26 publicly-traded companies in the “Apparel & Accessories” industry, but how does it weigh in compared to its competitors? We will compare Hanesbrands to similar businesses based on the strength of its profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Volatility and Risk

Hanesbrands has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Hanesbrands’ competitors have a beta of 0.72, indicating that their average stock price is 28% less volatile than the S&P 500.

Profitability

This table compares Hanesbrands and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hanesbrands 9.02% 64.80% 10.11%
Hanesbrands Competitors -1,518.08% -7.08% -7.75%

Valuation and Earnings

This table compares Hanesbrands and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Hanesbrands $6.36 billion $1.05 billion 16.63
Hanesbrands Competitors $2.68 billion $378.14 million -4.35

Hanesbrands has higher revenue and earnings than its competitors. Hanesbrands is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

94.4% of Hanesbrands shares are held by institutional investors. Comparatively, 48.4% of shares of all “Apparel & Accessories” companies are held by institutional investors. 1.1% of Hanesbrands shares are held by company insiders. Comparatively, 27.3% of shares of all “Apparel & Accessories” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Hanesbrands pays an annual dividend of $0.60 per share and has a dividend yield of 2.4%. Hanesbrands pays out 39.5% of its earnings in the form of a dividend. As a group, “Apparel & Accessories” companies pay a dividend yield of 1.4% and pay out 40.9% of their earnings in the form of a dividend. Hanesbrands has increased its dividend for 3 consecutive years. Hanesbrands is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Hanesbrands and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hanesbrands 0 4 7 0 2.64
Hanesbrands Competitors 297 1336 1916 76 2.49

Hanesbrands presently has a consensus price target of $27.30, indicating a potential upside of 8.03%. As a group, “Apparel & Accessories” companies have a potential upside of 3.90%. Given Hanesbrands’ stronger consensus rating and higher possible upside, research analysts plainly believe Hanesbrands is more favorable than its competitors.

Summary

Hanesbrands beats its competitors on 12 of the 15 factors compared.

About Hanesbrands

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.

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