Adidas (OTCMKTS:ADDYY) vs. Yue Yuen Industrial (OTCMKTS:YUEIY) Financial Analysis

Adidas (OTCMKTS:ADDYY) and Yue Yuen Industrial (OTCMKTS:YUEIY) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Adidas and Yue Yuen Industrial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adidas	$25.63 billion	1.49	$826.72 million	$3.67	29.16
Yue Yuen Industrial	$8.18 billion	0.32	$392.42 million	N/A	N/A

Adidas has higher revenue and earnings than Yue Yuen Industrial.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Adidas and Yue Yuen Industrial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adidas	0	2	4	3	3.11
Yue Yuen Industrial	0	0	0	0	0.00

Insider and Institutional Ownership

0.1% of Yue Yuen Industrial shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Adidas and Yue Yuen Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adidas	4.93%	20.68%	5.99%
Yue Yuen Industrial	N/A	N/A	N/A

Risk & Volatility

Adidas has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Yue Yuen Industrial has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Dividends

Adidas pays an annual dividend of $0.76 per share and has a dividend yield of 0.7%. Yue Yuen Industrial pays an annual dividend of $0.41 per share and has a dividend yield of 5.1%. Adidas pays out 20.7% of its earnings in the form of a dividend.

Summary

Adidas beats Yue Yuen Industrial on 10 of the 13 factors compared between the two stocks.

About Adidas

adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products in Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific, and Latin America. It offers footwear, apparel, and accessories and gear, such as bags and balls under the adidas brand; golf footwear and apparel under the adidas Golf brand; and outdoor footwear under the Five Ten brand. It sells its products through its own retail stores; mono-branded franchise stores and shop-in-shops; and wholesale and its e-commerce channels. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany.

About Yue Yuen Industrial

Yue Yuen Industrial (Holdings) Limited, an investment holding company, manufactures and sells athletic, athleisure, casual, and outdoor footwear in the People’s Republic of China, rest of Asia, the United States, Europe, and internationally. The company operates as an original design manufacturer/original equipment manufacturer for various international brand names, such as adidas, Asics, New Balance, Nike, Salomon, and Timberland. It retails sportswear, outdoor, and leisure products; and operates a sport service platform, which includes events, venues, media, broadcasting, shopping, activities, registration, ticketing, and other sports-related services online and offline for event sponsorship, promotions, sports center operations, and design services. In addition, the company provides commercial spaces to retailers and distributors; and corporate management consultation services. Further, it trades in footwear. The company was founded in 1969 and is headquartered in Kwun Tong, Hong Kong.