Hanesbrands (NYSE: HBI) and Supergroup Plc, Cheltenham (OTCMKTS:SEPGY) are both mid-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Insider and Institutional Ownership
98.7% of Hanesbrands shares are owned by institutional investors. 1.1% of Hanesbrands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Hanesbrands and Supergroup Plc, Cheltenham’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Supergroup Plc, Cheltenham||N/A||N/A||N/A|
Volatility & Risk
Hanesbrands has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Supergroup Plc, Cheltenham has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.
This is a breakdown of current ratings for Hanesbrands and Supergroup Plc, Cheltenham, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Supergroup Plc, Cheltenham||0||0||0||0||N/A|
Hanesbrands presently has a consensus target price of $24.81, indicating a potential upside of 25.95%. Given Hanesbrands’ higher probable upside, equities analysts clearly believe Hanesbrands is more favorable than Supergroup Plc, Cheltenham.
Hanesbrands pays an annual dividend of $0.60 per share and has a dividend yield of 3.0%. Supergroup Plc, Cheltenham pays an annual dividend of $0.36 per share and has a dividend yield of 1.4%. Hanesbrands pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Supergroup Plc, Cheltenham has raised its dividend for 4 consecutive years.
Valuation & Earnings
This table compares Hanesbrands and Supergroup Plc, Cheltenham’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hanesbrands||$6.47 billion||1.10||$61.89 million||$0.15||131.33|
|Supergroup Plc, Cheltenham||$973.16 million||2.11||$85.37 million||N/A||N/A|
Supergroup Plc, Cheltenham has lower revenue, but higher earnings than Hanesbrands.
Hanesbrands beats Supergroup Plc, Cheltenham on 9 of the 14 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.
Supergroup Plc, Cheltenham Company Profile
SuperGroup Plc engages in the design, production, and sale of clothing and accessories primarily under the Superdry brand for men and women worldwide. It operates through two segments, Retail and Wholesale. The Retail segment operates stores, concessions, and various Internet sites, which sell companys own brand and third party clothing, footwear, and accessories in the United Kingdom, the Republic of Ireland, Europe, and the United States. The Wholesale segment is involved in the ownership of brands; wholesale distribution of own brand products, such as clothing, footwear, and accessories; and trade sales. The companys products include T-shirts, polo shirts, hoods and sweats, denim, joggers, tops, dresses, jackets, shirts, knitwear, footwear, bags, and accessories. It also engages in contracting overseas personnel. The company operates through 863 stores in 62 countries; and 27 international Websites across 18 countries covering 12 languages. SuperGroup Plc was founded in 1985 and is headquartered in Cheltenham, the United Kingdom.
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