Hennes & Mauritz (OTCMKTS:HNNMY) & Canada Goose (NYSE:GOOS) Financial Analysis

Canada Goose (NYSE:GOOS) and Hennes & Mauritz (OTCMKTS:HNNMY) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Profitability

This table compares Canada Goose and Hennes & Mauritz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canada Goose	1.42%	14.60%	4.57%
Hennes & Mauritz	5.55%	31.51%	7.38%

Institutional & Insider Ownership

83.6% of Canada Goose shares are owned by institutional investors. Comparatively, 0.0% of Hennes & Mauritz shares are owned by institutional investors. 0.5% of Canada Goose shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Canada Goose has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Hennes & Mauritz has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Earnings and Valuation

This table compares Canada Goose and Hennes & Mauritz”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canada Goose	$1.11 billion	0.83	$16.29 million	$0.13	72.81
Hennes & Mauritz	$23.01 billion	1.02	$1.23 billion	$0.16	20.81

Hennes & Mauritz has higher revenue and earnings than Canada Goose. Hennes & Mauritz is trading at a lower price-to-earnings ratio than Canada Goose, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Canada Goose and Hennes & Mauritz, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canada Goose	3	5	2	0	1.90
Hennes & Mauritz	3	4	0	1	1.88

Canada Goose currently has a consensus price target of $12.53, suggesting a potential upside of 32.40%. Given Canada Goose’s stronger consensus rating and higher probable upside, research analysts plainly believe Canada Goose is more favorable than Hennes & Mauritz.

Summary

Hennes & Mauritz beats Canada Goose on 8 of the 15 factors compared between the two stocks.

About Canada Goose

Canada Goose Holdings Inc., together with its subsidiaries, designs, manufactures, and sells performance luxury apparel for men, women, youth, children, and babies in Canada, the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through three segments: Direct-to-Consumer, Wholesale, and Other. It offers parkas, lightweight down jackets, rainwear, windwear, apparel, fleece, footwear, and accessories for fall, winter, and spring seasons. The company operates through national e-commerce markets and directly operated retail stores. Canada Goose Holdings Inc. was founded in 1957 and is headquartered in Toronto, Canada.

About Hennes & Mauritz

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.