Differential Brands Group (NASDAQ: DFBG) and V.F. Corporation (NYSE:VFC) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Valuation and Earnings

This table compares Differential Brands Group and V.F. Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Differential Brands Group $155.65 million 0.16 $3.42 million ($1.06) -1.79
V.F. Corporation $12.01 billion 2.02 $1.87 billion $2.59 23.78

V.F. Corporation has higher revenue and earnings than Differential Brands Group. Differential Brands Group is trading at a lower price-to-earnings ratio than V.F. Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Differential Brands Group and V.F. Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Differential Brands Group -8.79% -23.53% -6.57%
V.F. Corporation 9.23% 27.44% 12.68%

Dividends

V.F. Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.7%. Differential Brands Group does not pay a dividend. V.F. Corporation pays out 64.9% of its earnings in the form of a dividend. V.F. Corporation has raised its dividend for 44 consecutive years.

Analyst Recommendations

This is a summary of current ratings and target prices for Differential Brands Group and V.F. Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Differential Brands Group 0 0 1 0 3.00
V.F. Corporation 1 16 4 0 2.14

Differential Brands Group presently has a consensus price target of $5.00, suggesting a potential upside of 163.16%. V.F. Corporation has a consensus price target of $58.61, suggesting a potential downside of 4.82%. Given Differential Brands Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Differential Brands Group is more favorable than V.F. Corporation.

Institutional & Insider Ownership

1.7% of Differential Brands Group shares are held by institutional investors. 62.5% of Differential Brands Group shares are held by insiders. Comparatively, 1.6% of V.F. Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Differential Brands Group has a beta of -1.72, indicating that its stock price is 272% less volatile than the S&P 500. Comparatively, V.F. Corporation has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Summary

V.F. Corporation beats Differential Brands Group on 11 of the 16 factors compared between the two stocks.

Differential Brands Group Company Profile

Differential Brands Group Inc., formerly Joe’s Jeans Inc., is engaged in the design, development and marketing of apparel products, which include denim jeans, related casual wear and accessories. The Company offers its products under various brands, such as Hudson, Robert Graham and SWIMS. Its segments are Wholesale and Retail. Its Wholesale segment consists of sales of Hudson products to retailers, specialty stores and international distributors. Its Retail segment consists of sales of its products to consumers through its retail Internet sites for Hudson products. The Hudson product line includes women’s, men’s and children’s denim jeans, pants and other bottoms. The Robert Graham product line includes men’s sport shirts, pants, sweaters, knits, t-shirts, sportcoats, outerwear and swimwear. Through SWIMS brand, it distributes a range of footwear, swimwear, outerwear, ready-to-wear and accessories across the world through department stores, independent specialty and luxury resorts.

V.F. Corporation Company Profile

V.F. Corporation (VF) is engaged in the design, production, procurement, marketing and distribution of branded lifestyle apparel, footwear and related products. The Company’s segments include Outdoor & Action Sports, Jeanswear, Imagewear and Sportswear. Its Outdoor & Action Sports Coalition is a group of authentic outdoor and activity-based lifestyle brands. Its product offerings include apparel, footwear, equipment, backpacks, luggage and accessories. Its Imagewear coalition consists of the Image business. Its Wrangler brand offers denim, apparel, accessories and footwear through mass merchants, specialty stores and department stores in the United States, VF-operated stores and online at www.wrangler.com. The Sportswear coalition consists of the Nautica and Kipling brand businesses in North America (the Kipling brand outside of North America is managed by the Outdoor & Action Sports coalition).

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