Head to Head Comparison: Innovative Designs (OTCMKTS:IVDN) versus Gildan Activewear (NYSE:GIL)

Gildan Activewear (NYSE:GIL) and Innovative Designs (OTCMKTS:IVDN) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Institutional and Insider Ownership

82.8% of Gildan Activewear shares are owned by institutional investors. 2.0% of Gildan Activewear shares are owned by company insiders. Comparatively, 24.4% of Innovative Designs shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for Gildan Activewear and Innovative Designs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gildan Activewear	0	2	12	1	2.93
Innovative Designs	0	0	0	0	0.00

Gildan Activewear presently has a consensus target price of $72.15, indicating a potential upside of 19.22%. Given Gildan Activewear’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Gildan Activewear is more favorable than Innovative Designs.

Risk and Volatility

Gildan Activewear has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Innovative Designs has a beta of -3, indicating that its stock price is 400% less volatile than the S&P 500.

Profitability

This table compares Gildan Activewear and Innovative Designs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gildan Activewear	14.13%	35.53%	13.06%
Innovative Designs	18.54%	29.89%	26.00%

Earnings and Valuation

This table compares Gildan Activewear and Innovative Designs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gildan Activewear	$3.27 billion	3.43	$400.86 million	$3.13	19.34
Innovative Designs	$1.38 million	5.41	$100,000.00	$0.03	6.46

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

Summary

Gildan Activewear beats Innovative Designs on 11 of the 15 factors compared between the two stocks.

About Gildan Activewear

Gildan Activewear Inc. manufactures and sells various apparel products in the United States, North America, Europe, Asia-Pacific, and Latin America. It provides various activewear products, including T-shirts, fleece tops and bottoms, and sports shirts under the Gildan, Gildan Performance, Gildan Hammer, Glidan Softstyle, Gildan Heavy Cotton, Gildan Ultra Cotton, Gildan DryBlend, Gildan HeavyBlend, Comfort Colors, and American Apparel brands. The company also offers hosiery products comprising athletic; dress; and casual, liner, therapeutic, and workwear socks under the Gildan, Under Armour, GoldToe, Signature Gold by Goldtoe, Peds, MediPeds, All Pro, and GoldTeo Edition TM brands. In addition, it provides men's and boys' underwear products, and ladies panties under the Gildan and Gildan Platinum brands. The company sells its products to wholesale distributors, screen printers, and embellishers, as well as to retailers and lifestyle brand companies. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was founded in 1946 and is headquartered in Montreal, Canada.

About Innovative Designs

Innovative Designs, Inc. engages in manufacture and marketing of cold weather recreational and industrial clothing products in the United States and Canada. The company operates in two segments, Apparel and House Wrap. It offers arctic armor line products, including jackets, bibs, and gloves for ice fisherman, snowmobilers, utility workers, oil/gas pipeline workers, railroad workers, construction workers, ski resort workers, and police and first responders; and house wrap that provides barrier protection and moisture vapor transmission and insulation for the building construction industry. In addition, it offers INSULTEX material in bulk to non-competing customers; products that restore the waterproof character of the outer side of its arctic armor clothing; and cold weather headgears and base insulation clothing products. The company primarily sells its products through independent sales agents, agencies, retailers, and distributors, as well as through website. The company was incorporated in 2002 and is based in Pittsburgh, Pennsylvania.