Contrasting Grasim Industries (OTCMKTS:GRSXY) and PVH (NYSE:PVH)

Grasim Industries (OTCMKTS:GRSXY) and PVH (NYSE:PVH) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Earnings & Valuation

This table compares Grasim Industries and PVH”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grasim Industries	$17.74 billion	0.75	$437.27 million	$0.73	26.71
PVH	$8.65 billion	0.46	$598.50 million	$8.92	9.18

PVH has lower revenue, but higher earnings than Grasim Industries. PVH is trading at a lower price-to-earnings ratio than Grasim Industries, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Grasim Industries has a beta of -0.22, indicating that its stock price is 122% less volatile than the S&P 500. Comparatively, PVH has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Grasim Industries and PVH, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grasim Industries	0	0	0	0	0.00
PVH	0	8	10	0	2.56

PVH has a consensus target price of $95.56, suggesting a potential upside of 16.65%. Given PVH’s stronger consensus rating and higher possible upside, analysts plainly believe PVH is more favorable than Grasim Industries.

Institutional and Insider Ownership

97.3% of PVH shares are held by institutional investors. 1.2% of PVH shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Grasim Industries and PVH’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grasim Industries	2.71%	5.48%	1.75%
PVH	5.34%	11.90%	5.32%

Dividends

Grasim Industries pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. PVH pays an annual dividend of $0.15 per share and has a dividend yield of 0.2%. Grasim Industries pays out 13.7% of its earnings in the form of a dividend. PVH pays out 1.7% 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.

Summary

PVH beats Grasim Industries on 12 of the 16 factors compared between the two stocks.

About Grasim Industries

Grasim Industries Limited operates in fibre, yarn, pulp, chemicals, textile, fertilizers, and insulators businesses in India and internationally. The company operates through Viscose, Chemicals, Cement, Financial Services, and Others segments. It provides viscose staple fiber, a man-made biodegradable fiber for use in apparels, home textiles, dress materials, knit wear products, and non-woven applications; wood pulp products; viscose filament yarn, a natural fibre for manufacturing fabrics such as georgettes, crepes, chiffons, and others; and textile products, such as linen and wool. The company offers various chemical products, including chlor-alkali and epoxy resin products. In addition, it provides electrical insulators for transmission lines and substations, as well as equipment and railways. Further, the company offers grey cement; white cement; ready mix concrete; and cement-based putty. Additionally, it provides various financial services comprising non-bank financial, life insurance, asset management, housing finance, equity broking, wealth management, general insurance advisory, and health insurance services. The company involved in solar power designing, engineering procurement, and commissioning business. Grasim Industries Limited was incorporated in 1947 and is based in Mumbai, India.

About PVH

PVH Corp. operates as an apparel company in the United States and internationally. The company operates through Tommy Hilfiger North America, Tommy Hilfiger International, Calvin Klein North America, Calvin Klein International, and Heritage Brands Wholesale segments. It designs and markets men's, women's, and children's branded apparel, footwear and accessories, underwear, sleepwear, outerwear, home furnishings, luggage, dresses, suits and swimwear, activewear, sportswear, socks and accessories, outerwear, golf products, footwear, watches and jewelry, eyeglasses and non-ophthalmic sunglasses, jeans wear, performance apparel, intimate apparel, dress shirts, handbags, fragrance, small leather goods, and other related products; and men's and boy's tailored clothing products, duvets, pillows, mattress pads and toppers, and feather beds. The company offers its products under its own brands, such as TOMMY HILFIGER, TOMMY JEANS, Calvin Klein, CK Calvin Klein, Calvin Klein Jeans, Calvin Klein Underwear, and Calvin Klein Performance, as well as various other owned, licensed, and private label brands. It distributes its products at wholesale in department, chain, and specialty stores; through warehouse clubs, mass market, and off-price and independent retailers; and through company-operated full-price, outlet stores, and concession locations; and through digital commerce sites. PVH Corp. was founded in 1881 and is based in New York, New York.