Prada (OTCMKTS:PRDSY) and Adidas (OTCMKTS:ADDYY) Financial Survey

Adidas (OTCMKTS:ADDYY) and Prada (OTCMKTS:PRDSY) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Dividends

Adidas pays an annual dividend of $1.17 per share and has a dividend yield of 1.3%. Prada pays an annual dividend of $0.16 per share and has a dividend yield of 1.5%. Adidas pays out 25.8% of its earnings in the form of a dividend. Prada pays out 35.9% 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.

Analyst Recommendations

This is a summary of current recommendations for Adidas and Prada, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adidas	1	3	9	0	2.62
Prada	0	1	1	0	2.50

Adidas presently has a consensus price target of $146.02, indicating a potential upside of 63.66%. Given Adidas’ stronger consensus rating and higher probable upside, analysts clearly believe Adidas is more favorable than Prada.

Profitability

This table compares Adidas and Prada’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%
Prada	N/A	N/A	N/A

Valuation and Earnings

This table compares Adidas and Prada”s top-line 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
Prada	N/A	N/A	N/A	$0.44	23.80

Adidas has higher revenue and earnings than Prada. Adidas is trading at a lower price-to-earnings ratio than Prada, indicating that it is currently the more affordable of the two stocks.

Summary

Adidas beats Prada on 9 of the 11 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 Prada

Prada S.p.A. designs, produces, and distributes leather goods, footwear, and ready to wear products worldwide. The company offers its products under the Prada, Miu Miu, Church’s, and Car Shoe brands. It operates in food sector under the Marchesi 1824 brand, as well as sailing races business under Luna Rossa brand name; eyewear and fragrances sector under licensing agreements; and engages in the real estate business. The company sells its products through a network of owned and franchise operated stores, e-commerce channels, department stores, independent retailers, and e-tailers. The company was founded in 1913 and is headquartered in Milan, Italy. Prada S.p.A. operates as a subsidiary of Prada Holding S.p.A.