Gildan Activewear (NYSE: GIL) and Vince Holding Corp. (NYSE:VNCE) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Gildan Activewear pays an annual dividend of $0.37 per share and has a dividend yield of 1.2%. Vince Holding Corp. does not pay a dividend. Gildan Activewear pays out 22.4% of its earnings in the form of a dividend. Gildan Activewear has raised its dividend for 4 consecutive years.
Volatility and Risk
Gildan Activewear has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Vince Holding Corp. has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.
Valuation and Earnings
This table compares Gildan Activewear and Vince Holding Corp.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gildan Activewear||$2.68 billion||2.57||$567.29 million||$1.65||18.62|
|Vince Holding Corp.||$258.72 million||0.12||-$1.31 million||($3.60)||-0.18|
Gildan Activewear has higher revenue and earnings than Vince Holding Corp.. Vince Holding Corp. is trading at a lower price-to-earnings ratio than Gildan Activewear, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for Gildan Activewear and Vince Holding Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vince Holding Corp.||0||1||2||0||2.67|
Gildan Activewear currently has a consensus target price of $35.33, suggesting a potential upside of 14.98%. Vince Holding Corp. has a consensus target price of $3.17, suggesting a potential upside of 400.26%. Given Vince Holding Corp.’s stronger consensus rating and higher probable upside, analysts plainly believe Vince Holding Corp. is more favorable than Gildan Activewear.
This table compares Gildan Activewear and Vince Holding Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vince Holding Corp.||-68.88%||-120.03%||-8.52%|
Institutional & Insider Ownership
72.6% of Gildan Activewear shares are owned by institutional investors. Comparatively, 14.2% of Vince Holding Corp. shares are owned by institutional investors. 58.4% of Vince Holding Corp. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Gildan Activewear beats Vince Holding Corp. on 11 of the 16 factors compared between the two stocks.
Gildan Activewear Company Profile
Gildan Activewear Inc. is a manufacturer and marketer of branded basic family apparel, including T-shirts, fleece, sport shirts, underwear, socks, hosiery and shapewear. The Company operates through two segments: Printwear and Branded Apparel. The Printwear segment designs, manufactures, sources, markets, and distributes undecorated activewear products. The Branded Apparel segment designs, manufactures, sources, markets, and distributes branded family apparel, which includes athletic, casual and dress socks, underwear, activewear, sheer hosiery, legwear, and shapewear products, which are sold to retailers in the United States and Canada. The Company sells its products under various brands, including the Gildan, Gold Toe, Anvil, Comfort Colors, American Apparel, Alstyle, Secret, Silks, Kushyfoot, Secret Silky, Therapy Plus, Peds, and MediPeds brands. The Company distributes its products in printwear markets in the United States, Canada, Mexico, Europe, Asia-Pacific and Latin America.
Vince Holding Corp. Company Profile
Vince Holding Corp. (Vince) is a United States-based company, which offers a range of women’s and men’s apparel, women’s and men’s footwear, and handbags. The Company operates as a fashion brand. The Company operates in two segments: Wholesale and Direct-to-consumer. The Company’s Wholesale segment consists of its operations to distribute products to various department stores and specialty stores in the United States and select international markets. The Company’s Direct-to-consumer segment consists of its operations to distribute products directly to the consumer through its branded specialty retail stores, outlet stores and e-commerce platform. The Company utilizes luxe fabrications and various techniques to create its product assortment. The Company serves its customers through various channels, including wholesale department stores and specialty stores in the United States, as well as through its branded retail locations and its Website.
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