Hanesbrands (NYSE:HBI) & Hugo Boss (OTCMKTS:BOSSY) Head to Head Comparison

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

Institutional & Insider Ownership

80.3% of Hanesbrands shares are held by institutional investors. 0.7% of Hanesbrands shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Hugo Boss and Hanesbrands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hugo Boss	0	1	0	0	2.00
Hanesbrands	0	4	1	0	2.20

Hanesbrands has a consensus price target of $6.50, suggesting a potential downside of 6.14%. Given Hanesbrands’ stronger consensus rating and higher possible upside, analysts clearly believe Hanesbrands is more favorable than Hugo Boss.

Volatility and Risk

Hugo Boss has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Hanesbrands has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.

Earnings & Valuation

This table compares Hugo Boss and Hanesbrands”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hugo Boss	$4.66 billion	0.71	$230.99 million	$0.69	13.83
Hanesbrands	$3.51 billion	0.70	-$320.43 million	$0.24	28.85

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hugo Boss	5.15%	15.57%	6.00%
Hanesbrands	2.49%	226.31%	5.19%

Summary

Hanesbrands beats Hugo Boss on 8 of the 14 factors compared between the two stocks.

About Hugo Boss

Hugo Boss AG, together with its subsidiaries, provides apparels, shoes, and accessories for men and women worldwide. It also offers licensed products comprising of fragrances, eyewear, watches, children’s fashion, equestrian, and cycling. The company markets and sells its products under the BOSS and HUGO brand names through freestanding stores, shop-in-shops, factory outlets, multi-brand stores, and franchise business, as well as online retailers, distribution, and stores. Hugo Boss AG was founded in 1924 and is headquartered in Metzingen, Germany.

About Hanesbrands

Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells a range of range of innerwear apparels for men, women, and children in the Americas, Europe, the Asia pacific, and internationally. The company operates through three segments: Innerwear, Activewear, and International. It sells men’s underwear, women’s panties, children’s underwear, and socks, as well as intimate apparel comprising bras and shapewear; home goods; activewear apparel comprising T-shirts, fleece, performance apparel, sport shirts, performance T-shirts and shorts, sports bras, teamwear, and thermals; and licensed logo apparel in collegiate bookstores and mass retail channels. The company licenses its Champion name for footwear and sports accessories. It offers its products 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, Bellinda, and RITMO brand names through retailers, wholesalers, and third-party embellishers. Hanesbrands Inc. was founded in 1901 and is headquartered in Winston-Salem, North Carolina.