Critical Review: Grasim Industries (OTCMKTS:GRSXY) vs. Hugo Boss (OTCMKTS:BOSSY)

Grasim Industries (OTCMKTS:GRSXY) and Hugo Boss (OTCMKTS:BOSSY) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grasim Industries	2.66%	5.56%	1.73%
Hugo Boss	5.92%	17.43%	7.02%

Dividends

Grasim Industries pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. Hugo Boss pays an annual dividend of $0.21 per share and has a dividend yield of 2.4%. Grasim Industries pays out 13.2% of its earnings in the form of a dividend. Hugo Boss pays out 25.3% 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.

Analyst Ratings

This is a summary of recent recommendations for Grasim Industries and Hugo Boss, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grasim Industries	0	0	0	0	0.00
Hugo Boss	0	2	0	0	2.00

Volatility and Risk

Grasim Industries has a beta of -0.23, meaning that its stock price is 123% less volatile than the S&P 500. Comparatively, Hugo Boss has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Valuation & Earnings

This table compares Grasim Industries and Hugo Boss”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grasim Industries	$17.74 billion	0.75	$437.27 million	$0.76	25.80
Hugo Boss	$4.83 billion	0.63	$282.26 million	$0.83	10.66

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

Summary

Hugo Boss beats Grasim Industries on 7 of the 12 factors compared between the two stocks.

About Grasim Industries

Grasim Industries Limited operates in fibre, yarn, pulp, chemicals, textile, fertilizers, and insulators businesses in India and internationally. The company operates through Viscose, Chemicals, Cement, Financial Services, and Others segments. It provides viscose staple fiber, a man-made biodegradable fiber for use in apparels, home textiles, dress materials, knit wear products, and non-woven applications; wood pulp products; viscose filament yarn, a natural fibre for manufacturing fabrics such as georgettes, crepes, chiffons, and others; and textile products, such as linen and wool. The company offers various chemical products, including chlor-alkali and epoxy resin products. In addition, it provides electrical insulators for transmission lines and substations, as well as equipment and railways. Further, the company offers grey cement; white cement; ready mix concrete; and cement-based putty. Additionally, it provides various financial services comprising non-bank financial, life insurance, asset management, housing finance, equity broking, wealth management, general insurance advisory, and health insurance services. The company involved in solar power designing, engineering procurement, and commissioning business. Grasim Industries Limited was incorporated in 1947 and is based in Mumbai, India.

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.