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

Insider and Institutional Ownership

38.7% of Columbia Sportswear shares are held by institutional investors. Comparatively, 99.4% of G-III Apparel Group, LTD. shares are held by institutional investors. 58.9% of Columbia Sportswear shares are held by insiders. Comparatively, 9.6% of G-III Apparel Group, LTD. shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Columbia Sportswear 8.01% 12.31% 9.84%
G-III Apparel Group, LTD. 1.23% 4.65% 2.63%

Risk and Volatility

Columbia Sportswear has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, G-III Apparel Group, LTD. has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500.

Dividends

Columbia Sportswear pays an annual dividend of $0.72 per share and has a dividend yield of 1.1%. G-III Apparel Group, LTD. does not pay a dividend. Columbia Sportswear pays out 26.5% of its earnings in the form of a dividend.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Columbia Sportswear $2.41 billion 1.86 $319.52 million $2.72 23.65
G-III Apparel Group, LTD. $2.55 billion 0.50 $137.67 million $0.69 37.93

Columbia Sportswear has higher revenue, but lower earnings than G-III Apparel Group, LTD.. Columbia Sportswear 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.

Analyst Ratings

This is a breakdown of current recommendations for Columbia Sportswear and G-III Apparel Group, LTD., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Columbia Sportswear 0 7 8 0 2.53
G-III Apparel Group, LTD. 1 3 7 0 2.55

Columbia Sportswear presently has a consensus price target of $64.25, indicating a potential downside of 0.11%. G-III Apparel Group, LTD. has a consensus price target of $33.40, indicating a potential upside of 27.63%. Given G-III Apparel Group, LTD.’s stronger consensus rating and higher probable upside, analysts clearly believe G-III Apparel Group, LTD. is more favorable than Columbia Sportswear.

Summary

Columbia Sportswear beats G-III Apparel Group, LTD. on 10 of the 16 factors compared between the two stocks.

Columbia Sportswear Company Profile

Columbia Sportswear Company is an apparel and footwear company. The Company designs, sources, markets and distributes outdoor lifestyle apparel, footwear, accessories and equipment under the Columbia, Mountain Hardwear, Sorel, prAna and other brands. Its geographic segments are the United States, Latin America and Asia Pacific (LAAP), Europe, Middle East and Africa (EMEA), and Canada. The Company develops and manages its merchandise in categories, including apparel, accessories and equipment, and footwear. It distributes its products through a mix of wholesale distribution channels, its own direct-to-consumer channels (retail stores and e-commerce), independent distributors and licensees. As of December 31, 2016, its products were sold in approximately 90 countries. In 59 of those countries, it sells to independent distributors to whom it has granted distribution rights. Contract manufacturers located outside the United States manufacture all of its products.

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.

Receive News & Ratings for Columbia Sportswear Company Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Columbia Sportswear Company and related companies with MarketBeat.com's FREE daily email newsletter.