Analyzing Hanesbrands (NYSE:HBI) and Hugo Boss (OTCMKTS:BOSSY)

Hanesbrands (NYSE:HBI) and Hugo Boss (OTCMKTS:BOSSY) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Risk & Volatility

Hanesbrands has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Hugo Boss has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Dividends

Hanesbrands pays an annual dividend of $0.60 per share and has a dividend yield of 9.6%. Hugo Boss pays an annual dividend of $0.21 per share and has a dividend yield of 2.2%. Hanesbrands pays out 250.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hugo Boss pays out 30.4% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Hanesbrands and Hugo Boss”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hanesbrands	$3.54 billion	0.62	-$320.43 million	$0.24	25.98
Hugo Boss	$4.66 billion	0.72	$230.99 million	$0.69	14.13

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

Insider & Institutional Ownership

80.3% of Hanesbrands shares are held by institutional investors. 0.5% of Hanesbrands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Hanesbrands and Hugo Boss, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hanesbrands	0	3	1	0	2.25
Hugo Boss	0	2	0	0	2.00

Hanesbrands currently has a consensus target price of $6.50, indicating a potential upside of 4.25%. Given Hanesbrands’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Hanesbrands is more favorable than Hugo Boss.

Profitability

This table compares Hanesbrands and Hugo Boss’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hanesbrands	2.49%	226.31%	5.19%
Hugo Boss	5.15%	15.57%	6.00%

Summary

Hanesbrands beats Hugo Boss on 9 of the 16 factors compared between the two stocks.

About Hanesbrands

Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells a range of range of innerwear apparels for men, women, and children in the Americas, Europe, the Asia pacific, and internationally. The company operates through three segments: Innerwear, Activewear, and International. It sells men’s underwear, women’s panties, children’s underwear, and socks, as well as intimate apparel comprising bras and shapewear; home goods; activewear apparel comprising T-shirts, fleece, performance apparel, sport shirts, performance T-shirts and shorts, sports bras, teamwear, and thermals; and licensed logo apparel in collegiate bookstores and mass retail channels. The company licenses its Champion name for footwear and sports accessories. It offers its products under the Hanes, Champion, Maidenform, JMS/Just My Size, Bali, Polo Ralph Lauren, Playtex, Alternative, Gear for Sports, Comfortwash, Hanes Beefy-T, Bonds, Sheridan, Bras N Things, Wonderbra, Berlei, Zorba, Sol y Oro, Maidenform, Rinbros, Bellinda, and RITMO brand names through retailers, wholesalers, and third-party embellishers. Hanesbrands Inc. was founded in 1901 and is headquartered in Winston-Salem, North Carolina.

About Hugo Boss

Hugo Boss AG, together with its subsidiaries, provides apparels, shoes, and accessories for men and women worldwide. It also offers licensed products comprising of fragrances, eyewear, watches, children’s fashion, equestrian, and cycling. The company markets and sells its products under the BOSS and HUGO brand names through freestanding stores, shop-in-shops, factory outlets, multi-brand stores, and franchise business, as well as online retailers, distribution, and stores. Hugo Boss AG was founded in 1924 and is headquartered in Metzingen, Germany.