Critical Comparison: Gildan Activewear (GIL) & G-III Apparel Group, LTD. (GIII)

Gildan Activewear (NYSE: GIL) and G-III Apparel Group, LTD. (NASDAQ:GIII) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Dividends

Gildan Activewear pays an annual dividend of $0.37 per share and has a dividend yield of 1.2%. G-III Apparel Group, LTD. does not pay a dividend. Gildan Activewear pays out 22.0% of its earnings in the form of a dividend. G-III Apparel Group, LTD. has increased its dividend for 4 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Gildan Activewear and G-III Apparel Group, LTD., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gildan Activewear 0 8 1 0 2.11
G-III Apparel Group, LTD. 1 3 8 0 2.58

Gildan Activewear presently has a consensus price target of $31.50, suggesting a potential upside of 4.69%. G-III Apparel Group, LTD. has a consensus price target of $33.40, suggesting a potential upside of 33.49%. Given G-III Apparel Group, LTD.’s stronger consensus rating and higher possible upside, analysts plainly believe G-III Apparel Group, LTD. is more favorable than Gildan Activewear.

Valuation and Earnings

This table compares Gildan Activewear and G-III Apparel Group, LTD.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Gildan Activewear $2.59 billion 2.55 $346.63 million $1.68 17.91
G-III Apparel Group, LTD. $2.39 billion 0.51 $51.93 million $0.69 36.26

Gildan Activewear has higher revenue and earnings than G-III Apparel Group, LTD.. Gildan Activewear is trading at a lower price-to-earnings ratio than G-III Apparel Group, LTD., indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

73.7% of Gildan Activewear shares are owned by institutional investors. Comparatively, 99.9% of G-III Apparel Group, LTD. shares are owned by institutional investors. 9.7% of G-III Apparel Group, LTD. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Gildan Activewear and G-III Apparel Group, LTD.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gildan Activewear 14.21% 18.80% 12.78%
G-III Apparel Group, LTD. 1.23% 4.65% 2.63%

Risk & Volatility

Gildan Activewear has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, G-III Apparel Group, LTD. has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500.

Summary

Gildan Activewear beats G-III Apparel Group, LTD. on 9 of the 17 factors compared between the two stocks.

Gildan Activewear Company Profile

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.

G-III Apparel Group, LTD. Company Profile

G-III Apparel Group, Ltd. designs, manufactures and markets a range of apparel products. The Company operates through two segments: wholesale operations and retail operations. Its apparel products include outerwear, dresses, sportswear, swimwear, women’s suits and women’s performance wear, as well as women’s handbags, footwear, small leather goods, cold weather accessories and luggage. The Company’s owned brands include Donna Karan, DKNY, DKNY Jeans, Vilebrequin, G-III Sports by Carl Banks, Eliza J, Black Rivet and Jessica Howard. It has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld, Kenneth Cole, Cole Haan and Dockers brands. Through its team sports business, it has licenses with the National Football League, National Basketball Association, Major League Baseball and National Hockey League. It also operates retail stores under the Donna Karan, Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein Performance names.

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