Tumi Holdings (NYSE: TUMI) and Gildan Activewear (NYSE:GIL) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Analyst Ratings

This is a breakdown of current ratings and target prices for Tumi Holdings and Gildan Activewear, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tumi Holdings 0 0 0 0 N/A
Gildan Activewear 0 6 4 0 2.40

Gildan Activewear has a consensus price target of $35.33, suggesting a potential upside of 11.53%. Given Gildan Activewear’s higher possible upside, analysts clearly believe Gildan Activewear is more favorable than Tumi Holdings.

Profitability

This table compares Tumi Holdings and Gildan Activewear’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tumi Holdings 8.95% 10.52% 8.26%
Gildan Activewear 14.16% 18.65% 12.68%

Valuation and Earnings

This table compares Tumi Holdings and Gildan Activewear’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tumi Holdings N/A N/A N/A N/A N/A
Gildan Activewear $2.68 billion 2.65 $567.29 million $1.65 19.20

Gildan Activewear has higher revenue and earnings than Tumi Holdings.

Institutional and Insider Ownership

72.6% of Gildan Activewear shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Gildan Activewear pays an annual dividend of $0.37 per share and has a dividend yield of 1.2%. Tumi Holdings does not pay a dividend. Gildan Activewear pays out 22.4% of its earnings in the form of a dividend. Tumi Holdings has raised its dividend for 4 consecutive years.

Summary

Gildan Activewear beats Tumi Holdings on 8 of the 10 factors compared between the two stocks.

Tumi Holdings Company Profile

Tumi Holdings, Inc. (Tumi) offers a line of travel and business products and accessories in multiple categories. The Company operates through four segments: Direct-to-Consumer North America, which sells its products directly to consumers through a network of approximately 150 company-owned retail stores consisting of full-price stores and outlet stores; Direct-to-Consumer International, which sells its products directly to consumers through a network of over 20 company-owned full-price and outlet stores in street venues and select malls in international locations; Indirect-to-Consumer North America, which sells its products to wholesale customers in North America through approximately 800 doors, including specialty luggage retailers, prestige department stores and business-to-business channels, and Indirect-to-Consumer International, which sells its products to international wholesale customers through approximately 1,000 doors.

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.

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