Head-To-Head Survey: Hennes & Mauritz (OTCMKTS:HNNMY) and RH (NYSE:RH)

RH (NYSE:RH) and Hennes & Mauritz (OTCMKTS:HNNMY) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Risk and Volatility

RH has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500. Comparatively, Hennes & Mauritz has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RH	$3.44 billion	0.64	$124.79 million	$5.62	20.82
Hennes & Mauritz	$23.01 billion	0.98	$1.23 billion	$0.17	18.82

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for RH and Hennes & Mauritz, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RH	3	9	7	0	2.21
Hennes & Mauritz	3	4	0	0	1.57

RH currently has a consensus target price of $164.86, indicating a potential upside of 40.87%. Given RH’s stronger consensus rating and higher probable upside, equities analysts clearly believe RH is more favorable than Hennes & Mauritz.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RH	3.23%	132.79%	1.63%
Hennes & Mauritz	5.94%	33.70%	7.80%

Institutional and Insider Ownership

90.2% of RH shares are held by institutional investors. Comparatively, 0.0% of Hennes & Mauritz shares are held by institutional investors. 26.9% of RH shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

RH beats Hennes & Mauritz on 9 of the 14 factors compared between the two stocks.

About RH

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.

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.