Hanesbrands (NYSE: HBI) and Vince Holding Corp. (NYSE:VNCE) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitabiliy and institutional ownership.

Earnings & Valuation

This table compares Hanesbrands and Vince Holding Corp.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hanesbrands $6.19 billion 1.39 $1.03 billion $1.39 16.94
Vince Holding Corp. $258.60 million 0.12 $1.97 million ($3.44) -0.18

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

Volatility & Risk

Hanesbrands has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Vince Holding Corp. has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500.

Insider & Institutional Ownership

92.5% of Hanesbrands shares are owned by institutional investors. Comparatively, 25.3% of Vince Holding Corp. shares are owned by institutional investors. 1.1% of Hanesbrands shares are owned by company insiders. Comparatively, 56.5% of Vince Holding Corp. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Hanesbrands pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. Vince Holding Corp. does not pay a dividend. Hanesbrands pays out 43.2% of its earnings in the form of a dividend. Vince Holding Corp. has increased its dividend for 3 consecutive years.

Profitability

This table compares Hanesbrands and Vince Holding Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hanesbrands 8.56% 65.05% 10.31%
Vince Holding Corp. -65.75% -24.26% -4.82%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Hanesbrands and Vince Holding Corp., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hanesbrands 0 4 7 1 2.75
Vince Holding Corp. 0 2 2 0 2.50

Hanesbrands currently has a consensus price target of $28.40, suggesting a potential upside of 20.59%. Vince Holding Corp. has a consensus price target of $3.88, suggesting a potential upside of 539.97%. Given Vince Holding Corp.’s higher probable upside, analysts clearly believe Vince Holding Corp. is more favorable than Hanesbrands.

Summary

Hanesbrands beats Vince Holding Corp. on 12 of the 17 factors compared between the two stocks.

About Hanesbrands

Hanesbrands Inc. is a marketer of basic innerwear and activewear apparel in the Americas, Europe, Australia and Asia/Pacific under apparel brands, such as Hanes, Champion, Maidenform, DIM, Bali, Playtex, Bonds, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Flexees, Gear for Sports and Berlei. The Company operates through four segments: Innerwear, Activewear, Direct to Consumer and International. The Innerwear segment focuses on core apparel products, such as intimate apparel, men’s underwear, women’s panties, children’s underwear, socks and hosiery. The Company operates in the activewear market through its Champion, Hanes and JMS/Just My Size brands. The Direct to Consumer segment operations include its domestic Company-operated outlet stores and Website operations that sell its branded products directly to consumers in the United States. The International segment includes products that primarily span across the innerwear and activewear segments.

About Vince Holding Corp.

Vince Holding Corp. (Vince) is a United States-based company, which offers a range of women’s and men’s apparel, women’s and men’s footwear, and handbags. The Company operates as a fashion brand. The Company operates in two segments: Wholesale and Direct-to-consumer. The Company’s Wholesale segment consists of its operations to distribute products to various department stores and specialty stores in the United States and select international markets. The Company’s Direct-to-consumer segment consists of its operations to distribute products directly to the consumer through its branded specialty retail stores, outlet stores and e-commerce platform. The Company utilizes luxe fabrications and various techniques to create its product assortment. The Company serves its customers through various channels, including wholesale department stores and specialty stores in the United States, as well as through its branded retail locations and its Website.

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