Financial Comparison: Hennes & Mauritz (OTCMKTS:HNNMY) versus Burberry Group (OTCMKTS:BURBY)

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

Analyst Ratings

This is a summary of recent ratings and target prices for Burberry Group and Hennes & Mauritz, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Burberry Group	0	0	0	5	4.00
Hennes & Mauritz	1	5	0	1	2.14

Volatility & Risk

Burberry Group has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Hennes & Mauritz has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Insider & Institutional Ownership

10.3% of Burberry Group shares are owned by institutional investors. Comparatively, 0.0% of Hennes & Mauritz shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Burberry Group and Hennes & Mauritz”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Burberry Group	$3.14 billion	1.83	-$95.68 million	N/A	N/A
Hennes & Mauritz	$23.01 billion	1.24	$1.23 billion	$0.16	25.31

Hennes & Mauritz has higher revenue and earnings than Burberry Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Burberry Group	N/A	N/A	N/A
Hennes & Mauritz	5.46%	30.80%	7.35%

Summary

Hennes & Mauritz beats Burberry Group on 6 of the 10 factors compared between the two stocks.

About Burberry Group

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. The company operates in two segments, Retail/Wholesale and Licensing. It provides womenswear, menswear, childrenswear, beauty, eyewear, shoes, and accessories, as well as leather goods, such as bags. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. It sells its products through Burberry mainline stores, concessions, outlets, digital commerce, Burberry franchisees, department stores, and multi-brand specialty accounts, as well as through Burberry.com website. It operates in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. The company was founded in 1856 and is headquartered in London, the United Kingdom.

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.