Sequential Brands Group (NASDAQ: SQBG) and Gildan Activewear (NYSE:GIL) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Insider and Institutional Ownership
45.4% of Sequential Brands Group shares are held by institutional investors. Comparatively, 73.2% of Gildan Activewear shares are held by institutional investors. 27.3% of Sequential Brands Group shares are held 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.
This table compares Sequential Brands Group and Gildan Activewear’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sequential Brands Group||$167.46 million||0.70||-$185.71 million||$0.44||4.20|
|Gildan Activewear||$2.75 billion||2.33||$362.33 million||$1.72||17.02|
Gildan Activewear has higher revenue and earnings than Sequential Brands Group. Sequential Brands Group is trading at a lower price-to-earnings ratio than Gildan Activewear, indicating that it is currently the more affordable of the two stocks.
Gildan Activewear pays an annual dividend of $0.45 per share and has a dividend yield of 1.5%. Sequential Brands Group does not pay a dividend. Gildan Activewear pays out 26.2% of its earnings in the form of a dividend. Gildan Activewear has raised its dividend for 5 consecutive years.
Volatility and Risk
Sequential Brands Group has a beta of -0.32, suggesting that its share price is 132% less volatile than the S&P 500. Comparatively, Gildan Activewear has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Sequential Brands Group and Gildan Activewear, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sequential Brands Group||0||4||3||0||2.43|
Sequential Brands Group currently has a consensus price target of $7.00, indicating a potential upside of 278.38%. Gildan Activewear has a consensus price target of $33.75, indicating a potential upside of 15.31%. Given Sequential Brands Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Sequential Brands Group is more favorable than Gildan Activewear.
This table compares Sequential Brands Group and Gildan Activewear’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sequential Brands Group||-110.90%||4.28%||1.57%|
Gildan Activewear beats Sequential Brands Group on 13 of the 17 factors compared between the two stocks.
About Sequential Brands Group
Sequential Brands Group, Inc. owns, promotes, markets, and licenses a portfolio of consumer brands in the United States and internationally. It offers products in the apparel, footwear, eyewear, fashion accessories, and home goods categories under the Jessica Simpson, AND1, Avia, GAIAM, Joe's Jeans, Ellen Tracy, Emeril Lagasse, William Rast, Heelys, Revo, Caribbean Joe, DVS, The Franklin Mint, Linens N Things, SPRI, Nevados, and FUL brand names; and food, wine, magazines, books, and other print and digital content categories under the Martha Stewart brand name. The company licenses its brands through various distribution channels to retailers, wholesalers, and distributors. Sequential Brands Group, Inc. was incorporated in 1982 and is headquartered in New York, New York.
About Gildan Activewear
Gildan Activewear Inc. manufactures and sells a range of apparel products in the United States, Canada, Mexico, Europe, the Asia-Pacific, and Latin America. It operates in two segments, Printwear and Branded Apparel. The company manufactures and markets active wear products, including T-shirts, fleece tops and bottoms, and sport shirts under Gildan, Gildan Performance, Gildan Platinum, Gildan Hammer, Smart Basics, Comfort Colors, American Apparel, Anvil, Alstyle, Gold Toe, and Mossy Oak brands. It also offers athletic, dress, casual, workwear, legwear, and therapeutic socks under the Gildan, Gildan Platinum, Smart Basics, Under Armour, Gold Toe, PowerSox, GT a Gold Toe Brand, Silver Toe, Signature Gold by Goldtoe, Peds, MediPeds, Kushyfoot, Therapy Plus, All Pro, and Mossy Oak brand names. In addition, the company provides men's and boys' top and bottom underwear, and ladies panties under Gildan, Gildan Platinum, Smart Basics, and American Apparel brand names; hosiery comprising sheer panty hose, tights, and leggings under Secret, Silks, Secret Silky, Peds, and American Apparel brand names; and ladies shapewear and intimates accessories under Secret and American Apparel brand names, as well as other products, such as denim, jackets, sweaters, bodysuits, skirts, dresses, and accessories. Gildan Activewear Inc. serves wholesale distributors, screen printers/embellishers, retailers, and individual consumers. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was incorporated in 1984 and is headquartered in Montreal, Canada.
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