Financial Survey: Hanesbrands (NYSE:HBI) vs. Moncler (OTCMKTS:MONRF)

Moncler (OTCMKTS:MONRF) and Hanesbrands (NYSE:HBI) are both consumer cyclical companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.

Institutional and Insider Ownership

12.2% of Moncler shares are owned by institutional investors. Comparatively, 87.6% of Hanesbrands shares are owned by institutional investors. 0.4% of Hanesbrands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Moncler and Hanesbrands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Moncler	0	0	2	0	3.00
Hanesbrands	1	5	0	0	1.83

Hanesbrands has a consensus price target of $5.64, suggesting a potential upside of 7.48%. Given Hanesbrands’ higher probable upside, analysts clearly believe Hanesbrands is more favorable than Moncler.

Earnings & Valuation

This table compares Moncler and Hanesbrands’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Moncler	N/A	N/A	N/A	$0.42	162.26
Hanesbrands	$5.97 billion	0.31	-$127.20 million	($1.12)	-4.69

Moncler has higher earnings, but lower revenue than Hanesbrands. Hanesbrands is trading at a lower price-to-earnings ratio than Moncler, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Moncler and Hanesbrands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Moncler	N/A	N/A	N/A
Hanesbrands	-6.61%	22.89%	1.53%

Dividends

Moncler pays an annual dividend of $0.10 per share and has a dividend yield of 0.1%. Hanesbrands pays an annual dividend of $0.60 per share and has a dividend yield of 11.4%. Moncler pays out 23.6% of its earnings in the form of a dividend. Hanesbrands pays out -53.6% 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. Hanesbrands is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Hanesbrands beats Moncler on 8 of the 13 factors compared between the two stocks.

About Moncler

Moncler S.p.A., together with its subsidiaries, designs, produces, and distributes clothing and related accessories for men, women, and children under the Moncler and Stone Island brand names. Its product portfolio includes footwear products; leather goods, such as bags, backpacks, and accessories; and sunglasses and eyeglasses under the Moncler Lunettes brand. The company also offers perfume for men and women. It operates directly operated stores and wholesale shop-in-shops. The company also sells its products through moncler.com, an online store. It serves in Italy, other European countries, Japan, the rest of Asia, and the Americas. Moncler S.p.A. was founded in 1952 and is headquartered in Milan, Italy.

About Hanesbrands

Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells a range of basic apparel for men, women, and children. The company operates through three segments: Innerwear, Activewear, and International. It sells men's underwear, women's panties, children's underwear and socks, and activewear, as well as intimate apparel, such as bras and shapewears; home goods; and T-shirts, fleece, performance apparel, sport shirts, performance T-shirts and shorts, sports bras, teamwear, and thermals, as well as licensed logo apparel in collegiate bookstores and mass retail channels. The company licenses its Champion name for footwear and sports accessories. Hanesbrands Inc. provides its products primarily under the Hanes, Champion, Maidenform, JMS/Just My Size, Bali, Polo Ralph Lauren, Playtex, Alternative, Gear for Sports, Comfortwash, Hanes Beefy-T, Bonds, Sheridan, Bras N Things, Wonderbra, Berlei, Zorba, Sol y Oro, Maidenform, Rinbros, and Bellinda brand names. The company markets its products through retailers, wholesalers, and third-party embellishers. It sells its products in the Americas, Europe, the Asia pacific region, and internationally. Hanesbrands Inc. was founded in 1901 and is headquartered in Winston-Salem, North Carolina.