K Swiss (NASDAQ: KSWS) and Gildan Activewear (NYSE:GIL) are both apparel & accessories – nec companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
Insider & Institutional Ownership
69.4% of Gildan Activewear shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares K Swiss and Gildan Activewear’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Gildan Activewear pays an annual dividend of $0.45 per share and has a dividend yield of 1.5%. K Swiss does not pay a dividend. Gildan Activewear pays out 28.0% of its earnings in the form of a dividend. Gildan Activewear has raised its dividend for 5 consecutive years.
Earnings & Valuation
This table compares K Swiss and Gildan Activewear’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gildan Activewear||$2.75 billion||2.34||$362.33 million||$1.61||18.24|
Gildan Activewear has higher revenue and earnings than K Swiss. K Swiss 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 for K Swiss and Gildan Activewear, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Gildan Activewear has a consensus target price of $33.75, indicating a potential upside of 14.91%. Given Gildan Activewear’s higher probable upside, analysts clearly believe Gildan Activewear is more favorable than K Swiss.
Risk and Volatility
K Swiss has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Gildan Activewear has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.
Gildan Activewear beats K Swiss on 11 of the 13 factors compared between the two stocks.
About K Swiss
K-Swiss Inc. (K-Swiss) is engaged in designing, developing and marketing an array of footwear, apparel and accessories for athletic, sports and fitness activities and casual wear under the K-Swiss brand. The Company also designs, develops and markets footwear for adventurers for all terrains under the Palladium brand. The Company sells products primarily to footwear stores, pro shops, sporting goods stores and department stores. Internationally, as of December 31, 2011, K-Swiss had the right to market its products in 124 countries through eight international subsidiaries and 29 distributors. During the year ended December 31, 2011, approximately 60%, 21%, 17% and 2% of the Company’s footwear products were manufactured in China, Thailand, Vietnam and Indonesia, respectively. In May 2013, E.Land World Ltd. completed the acquisition of K Swiss Inc in a merger transaction.
About Gildan Activewear
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.
Receive News & Ratings for K Swiss Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for K Swiss and related companies with MarketBeat.com's FREE daily email newsletter.