Critical Review: Gildan Activewear (NYSE:GIL) and Nitches (OTCMKTS:NICH)

Nitches (OTCMKTS:NICH) and Gildan Activewear (NYSE:GIL) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Volatility & Risk

Nitches has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Gildan Activewear has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Valuation & Earnings

This table compares Nitches and Gildan Activewear”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nitches	N/A	N/A	-$2.84 million	N/A	N/A
Gildan Activewear	$3.62 billion	2.87	$398.88 million	$2.62	21.40

Gildan Activewear has higher revenue and earnings than Nitches.

Analyst Recommendations

This is a summary of current recommendations for Nitches and Gildan Activewear, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nitches	0	0	0	0	0.00
Gildan Activewear	1	2	13	0	2.75

Gildan Activewear has a consensus price target of $80.08, suggesting a potential upside of 42.84%. Given Gildan Activewear’s stronger consensus rating and higher probable upside, analysts clearly believe Gildan Activewear is more favorable than Nitches.

Institutional & Insider Ownership

82.8% of Gildan Activewear shares are held by institutional investors. 23.2% of Nitches shares are held by insiders. Comparatively, 2.0% of Gildan Activewear shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Nitches and Gildan Activewear’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nitches	N/A	N/A	N/A
Gildan Activewear	11.02%	27.32%	9.58%

Summary

Gildan Activewear beats Nitches on 10 of the 11 factors compared between the two stocks.

About Nitches

Nitches Inc. engages in the production and distribution of household, lifestyle, travel and leisure, sports goods, and clothing items. It also develops NITCHES OVS, an owner verification system (OVS) mobile application that can be used to verify authenticity and ownership of Nitches' luxury products, apparels, and streetwear clothing items. The company sells its products through on-line store on the Nitches website, nitchescorp.com/brands/. Nitches Inc. was formerly known as Beebas Creations Inc. and changed its name to Nitches Inc. in July 1992. The company was founded in 1971 and is based in Las Vegas, California.

About Gildan Activewear

Gildan Activewear Inc. manufactures and sells various apparel products in the United States, North America, Europe, Asia-Pacific, and Latin America. It provides various activewear products, including T-shirts, fleece tops and bottoms, and sports shirts under the Gildan, Gildan Performance, Gildan Hammer, Glidan Softstyle, Gildan Heavy Cotton, Gildan Ultra Cotton, Gildan DryBlend, Gildan HeavyBlend, Comfort Colors, and American Apparel brands. The company also offers hosiery products comprising athletic; dress; and casual, liner, therapeutic, and workwear socks under the Gildan, Under Armour, GoldToe, Signature Gold by Goldtoe, Peds, MediPeds, All Pro, and GoldTeo Edition TM brands. In addition, it provides men's and boys' underwear products, and ladies panties under the Gildan and Gildan Platinum brands. The company sells its products to wholesale distributors, screen printers, and embellishers, as well as to retailers and lifestyle brand companies. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was founded in 1946 and is headquartered in Montreal, Canada.