PVH (NYSE:PVH) versus Wacoal (OTCMKTS:WACLY) Critical Contrast

PVH (NYSE:PVH) and Wacoal (OTCMKTS:WACLY) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Valuation and Earnings

This table compares PVH and Wacoal”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PVH	$8.65 billion	0.41	$598.50 million	$7.09	10.29
Wacoal	$1.14 billion	1.51	$46.13 million	$4.29	38.81

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

Volatility & Risk

PVH has a beta of 1.81, indicating that its stock price is 81% more volatile than the S&P 500. Comparatively, Wacoal has a beta of -0.08, indicating that its stock price is 108% less volatile than the S&P 500.

Dividends

PVH pays an annual dividend of $0.15 per share and has a dividend yield of 0.2%. Wacoal pays an annual dividend of $3.14 per share and has a dividend yield of 1.9%. PVH pays out 2.1% of its earnings in the form of a dividend. Wacoal pays out 73.2% 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.

Institutional & Insider Ownership

97.3% of PVH shares are held by institutional investors. 1.2% of PVH shares are held by company insiders. Comparatively, 0.8% of Wacoal shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for PVH and Wacoal, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PVH	0	6	10	0	2.63
Wacoal	0	0	0	0	0.00

PVH currently has a consensus target price of $98.27, suggesting a potential upside of 34.67%. Given PVH’s stronger consensus rating and higher probable upside, equities analysts plainly believe PVH is more favorable than Wacoal.

Profitability

This table compares PVH and Wacoal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PVH	4.63%	12.66%	5.80%
Wacoal	4.06%	3.39%	2.48%

Summary

PVH beats Wacoal on 13 of the 16 factors compared between the two stocks.

About PVH

PVH Corp. operates as an apparel company in the United States and internationally. The company operates through Tommy Hilfiger North America, Tommy Hilfiger International, Calvin Klein North America, Calvin Klein International, and Heritage Brands Wholesale segments. It designs and markets men's, women's, and children's branded apparel, footwear and accessories, underwear, sleepwear, outerwear, home furnishings, luggage, dresses, suits and swimwear, activewear, sportswear, socks and accessories, outerwear, golf products, footwear, watches and jewelry, eyeglasses and non-ophthalmic sunglasses, jeans wear, performance apparel, intimate apparel, dress shirts, handbags, fragrance, small leather goods, and other related products; and men's and boy's tailored clothing products, duvets, pillows, mattress pads and toppers, and feather beds. The company offers its products under its own brands, such as TOMMY HILFIGER, TOMMY JEANS, Calvin Klein, CK Calvin Klein, Calvin Klein Jeans, Calvin Klein Underwear, and Calvin Klein Performance, as well as various other owned, licensed, and private label brands. It distributes its products at wholesale in department, chain, and specialty stores; through warehouse clubs, mass market, and off-price and independent retailers; and through company-operated full-price, outlet stores, and concession locations; and through digital commerce sites. PVH Corp. was founded in 1881 and is based in New York, New York.

About Wacoal

Wacoal Holdings Corp. engages in the manufacturing, wholesale, and retail sale of intimate apparel, outerwear, sportswear, and other textile products and accessories in Japan, Asia, Oceania, the United States, and Europe. The company operates through Wacoal Business (Domestic), Wacoal Business (Overseas), Peach John Business, and Other Businesses segments. It offers intimate apparel mainly women’s foundation wear, lingerie, nightwear and children’s underwear; and outerwear, sportswear, and other textile products and accessories. The company also engages in the restaurant, cultural and service-related businesses; and manufacture and sale of mannequins and fixtures, interior design work, and other textile-related businesses. It offers products through department stores, general merchandisers, and other general retailers in Japan, as well as directly managed retail stores, E-commerce websites, and distributors in Japan and internationally. Wacoal Holdings Corp. was founded in 1946 and is headquartered in Kyoto, Japan.