Adidas (OTCMKTS:ADDYY – Get Free Report) and Columbia Sportswear (NASDAQ:COLM – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.
Volatility & Risk
Adidas has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Columbia Sportswear has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for Adidas and Columbia Sportswear, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Adidas | 1 | 3 | 9 | 0 | 2.62 |
| Columbia Sportswear | 1 | 3 | 2 | 0 | 2.17 |
Dividends
Adidas pays an annual dividend of $1.17 per share and has a dividend yield of 1.3%. Columbia Sportswear pays an annual dividend of $1.20 per share and has a dividend yield of 2.1%. Adidas pays out 25.8% of its earnings in the form of a dividend. Columbia Sportswear pays out 31.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Insider and Institutional Ownership
47.8% of Columbia Sportswear shares are owned by institutional investors. 51.9% of Columbia Sportswear shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Adidas and Columbia Sportswear”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Adidas | $28.06 billion | 1.14 | $1.52 billion | $4.54 | 19.65 |
| Columbia Sportswear | $3.40 billion | 0.87 | $177.22 million | $3.85 | 15.07 |
Adidas has higher revenue and earnings than Columbia Sportswear. Columbia Sportswear is trading at a lower price-to-earnings ratio than Adidas, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Adidas and Columbia Sportswear’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Adidas | 5.30% | 22.35% | 6.80% |
| Columbia Sportswear | 6.05% | 11.20% | 6.67% |
Summary
Adidas beats Columbia Sportswear on 12 of the 16 factors compared between the two stocks.
About Adidas
adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products in Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific, and Latin America. It offers footwear, apparel, and accessories and gear, such as bags and balls under the adidas brand; golf footwear and apparel under the adidas Golf brand; and outdoor footwear under the Five Ten brand. It sells its products through its own retail stores; mono-branded franchise stores and shop-in-shops; and wholesale and its e-commerce channels. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany.
About Columbia Sportswear
Columbia Sportswear Company, together with its subsidiaries, designs, develops, markets, and distributes outdoor, active, and everyday lifestyle apparel, footwear, accessories, and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. The company provides apparel, accessories, and equipment for hiking, trail running, snow, fishing, hunting, mountaineering, climbing, skiing and snowboarding, trail, and outdoor activities. It offers footwear products that include lightweight hiking boot; trail running shoes; rugged cold weather boots; sandals and shoes for use in water activities; and footwear for lifestyle wear. In addition, it owned network of branded and outlet retail stores; brand-specific e-commerce sites; and concession or franchise-based arrangements with third parties at branded outlet and shop-in-shop retail locations, as well as through independently operated specialty outdoor and sporting goods stores, sporting goods chains, department store chains, internet retailers, and international distributors. The company sells its products under the Columbia, Mountain Hard Wear, SOREL, and prAna brand names. Columbia Sportswear Company was founded in 1938 and is headquartered in Portland, Oregon.
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