Hanesbrands (HBI) & its Competitors Critical Review
Hanesbrands (NYSE: HBI) is one of 26 public companies in the “Apparel & Accessories” industry, but how does it weigh in compared to its peers? We will compare Hanesbrands to related businesses based off the strength of its risk, institutional ownership, valuation, analyst recommendations, earnings, profitability and dividends.
Institutional and Insider Ownership
94.4% of Hanesbrands shares are owned by institutional investors. Comparatively, 48.4% of shares of all “Apparel & Accessories” companies are owned by institutional investors. 1.1% of Hanesbrands shares are owned by company insiders. Comparatively, 27.3% of shares of all “Apparel & Accessories” companies 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.
This is a breakdown of current ratings and target prices for Hanesbrands and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hanesbrands currently has a consensus target price of $27.30, suggesting a potential upside of 8.64%. All “Apparel & Accessories” companies have a potential upside of 4.64%. Given Hanesbrands’ stronger consensus rating and higher possible upside, research analysts plainly believe Hanesbrands is more favorable than its peers.
Volatility and Risk
Hanesbrands has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Hanesbrands’ peers have a beta of 0.72, suggesting that their average share price is 28% less volatile than the S&P 500.
Hanesbrands pays an annual dividend of $0.60 per share and has a dividend yield of 2.4%. Hanesbrands pays out 39.5% of its earnings in the form of a dividend. As a group, “Apparel & Accessories” companies pay a dividend yield of 1.4% and pay out 40.9% of their earnings in the form of a dividend. Hanesbrands has increased its dividend for 3 consecutive years. Hanesbrands is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Hanesbrands and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Hanesbrands||$6.36 billion||$1.05 billion||16.53|
|Hanesbrands Competitors||$2.67 billion||$376.20 million||-4.38|
Hanesbrands has higher revenue and earnings than its peers. Hanesbrands is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently the more expensive than other companies in its industry.
This table compares Hanesbrands and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Hanesbrands beats its peers on 12 of the 15 factors compared.
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.
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