Hanesbrands (HBI) vs. Crocs (NASDAQ:CROX) Head to Head Contrast

Crocs (NASDAQ: CROX) and Hanesbrands (NYSE:HBI) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Valuation & Earnings

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This table compares Crocs and Hanesbrands’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Crocs $1.02 billion 1.11 $10.23 million ($0.02) -829.00
Hanesbrands $6.47 billion 1.05 $61.89 million $1.93 9.78

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

Risk and Volatility

Crocs has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Hanesbrands has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Crocs and Hanesbrands, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Crocs 1 3 3 0 2.29
Hanesbrands 0 11 6 0 2.35

Crocs currently has a consensus price target of $10.17, suggesting a potential downside of 38.68%. Hanesbrands has a consensus price target of $24.53, suggesting a potential upside of 29.92%. Given Hanesbrands’ stronger consensus rating and higher possible upside, analysts clearly believe Hanesbrands is more favorable than Crocs.

Institutional and Insider Ownership

99.8% of Crocs shares are owned by institutional investors. Comparatively, 100.0% of Hanesbrands shares are owned by institutional investors. 1.4% of Crocs shares are owned by company insiders. Comparatively, 1.1% of Hanesbrands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Crocs 1.00% 6.19% 2.36%
Hanesbrands 0.96% 72.30% 10.04%

Dividends

Hanesbrands pays an annual dividend of $0.60 per share and has a dividend yield of 3.2%. Crocs does not pay a dividend. Hanesbrands pays out 31.1% of its earnings in the form of a dividend. Hanesbrands has raised its dividend for 4 consecutive years.

Summary

Hanesbrands beats Crocs on 12 of the 16 factors compared between the two stocks.

Crocs Company Profile

Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and distributes casual lifestyle footwear and accessories for men, women, and children worldwide. It offers various footwear products, including clogs, sandals, flips and slides, shoes, and boots under the Crocs brand name. The company sells its products in approximately 90 countries through domestic wholesalers, as well as international wholesalers and distributors; and stores and e-commerce sites. As of December 31, 2017, it had 161 retail stores; 71 kiosks and store-in-stores; 215 outlet stores; and 13 company-operated e-commerce sites. The company was founded in 1999 and is headquartered in Niwot, Colorado.

Hanesbrands Company Profile

Hanesbrands Inc. is a marketer of basic innerwear and activewear apparel in the Americas, Europe, Australia and Asia/Pacific under apparel brands, such as Hanes, Champion, Maidenform, DIM, Bali, Playtex, Bonds, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Flexees, Gear for Sports and Berlei. The Company operates through four segments: Innerwear, Activewear, Direct to Consumer and International. The Innerwear segment focuses on core apparel products, such as intimate apparel, men’s underwear, women’s panties, children’s underwear, socks and hosiery. The Company operates in the activewear market through its Champion, Hanes and JMS/Just My Size brands. The Direct to Consumer segment operations include its domestic Company-operated outlet stores and Website operations that sell its branded products directly to consumers in the United States. The International segment includes products that primarily span across the innerwear and activewear segments.

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