Hennes & Mauritz (OTCMKTS:HNNMY) versus Industria de Diseno Textil (OTCMKTS:IDEXY) Head to Head Comparison

Industria de Diseno Textil (OTCMKTS:IDEXY) and Hennes & Mauritz (OTCMKTS:HNNMY) are both large-cap retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for Industria de Diseno Textil and Hennes & Mauritz, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industria de Diseno Textil	0	0	1	4	3.80
Hennes & Mauritz	1	4	0	1	2.17

Insider & Institutional Ownership

0.0% of Hennes & Mauritz shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Industria de Diseno Textil and Hennes & Mauritz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Industria de Diseno Textil	15.40%	33.70%	17.78%
Hennes & Mauritz	4.80%	26.34%	6.32%

Risk & Volatility

Industria de Diseno Textil has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Hennes & Mauritz has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Dividends

Industria de Diseno Textil pays an annual dividend of $0.29 per share and has a dividend yield of 1.8%. Hennes & Mauritz pays an annual dividend of $0.09 per share and has a dividend yield of 2.4%. Industria de Diseno Textil pays out 52.7% of its earnings in the form of a dividend. Hennes & Mauritz pays out 64.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation & Earnings

This table compares Industria de Diseno Textil and Hennes & Mauritz”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Industria de Diseno Textil	$41.81 billion	4.77	$6.32 billion	$0.55	29.05
Hennes & Mauritz	$22.18 billion	1.18	$1.11 billion	$0.14	26.50

Industria de Diseno Textil has higher revenue and earnings than Hennes & Mauritz. Hennes & Mauritz is trading at a lower price-to-earnings ratio than Industria de Diseno Textil, indicating that it is currently the more affordable of the two stocks.

Summary

Industria de Diseno Textil beats Hennes & Mauritz on 12 of the 15 factors compared between the two stocks.

About Industria de Diseno Textil

Industria de Diseño Textil, S.A. engages in the retail and online distribution of clothing, footwear, accessories, and household products. The company sells its products under the Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home brands. It is also involved in the textile manufacturing, logistics, design, insurance, construction, and real estate businesses, as well as provides financial services. The company operates in Spain, rest of Europe, the Americas, Asia, and internationally. Industria de Diseño Textil, S.A. was founded in 1963 and is headquartered in A Coruña, Spain.

About Hennes & Mauritz

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.