Financial Contrast: PVH Corp. (PVH) and Columbia Sportswear (COLM)

PVH Corp. (NYSE: PVH) and Columbia Sportswear (NASDAQ:COLM) are both mid-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Valuation & Earnings

This table compares PVH Corp. and Columbia Sportswear’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PVH Corp. $8.41 billion 1.17 $1.14 billion $5.23 24.37
Columbia Sportswear $2.41 billion 1.69 $319.52 million $2.72 21.47

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

Insider & Institutional Ownership

95.3% of PVH Corp. shares are owned by institutional investors. Comparatively, 38.9% of Columbia Sportswear shares are owned by institutional investors. 1.5% of PVH Corp. shares are owned by insiders. Comparatively, 58.9% of Columbia Sportswear shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

PVH Corp. pays an annual dividend of $0.15 per share and has a dividend yield of 0.1%. Columbia Sportswear pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. PVH Corp. pays out 2.9% of its earnings in the form of a dividend. Columbia Sportswear pays out 26.5% 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.

Profitability

This table compares PVH Corp. and Columbia Sportswear’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PVH Corp. 4.96% 11.67% 5.13%
Columbia Sportswear 8.01% 12.31% 9.84%

Analyst Ratings

This is a summary of current ratings for PVH Corp. and Columbia Sportswear, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PVH Corp. 0 3 13 0 2.81
Columbia Sportswear 0 7 7 0 2.50

PVH Corp. currently has a consensus price target of $137.93, indicating a potential upside of 8.21%. Columbia Sportswear has a consensus price target of $63.83, indicating a potential upside of 9.28%. Given Columbia Sportswear’s higher probable upside, analysts plainly believe Columbia Sportswear is more favorable than PVH Corp..

Volatility & Risk

PVH Corp. has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Columbia Sportswear has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Summary

Columbia Sportswear beats PVH Corp. on 9 of the 16 factors compared between the two stocks.

PVH Corp. Company Profile

PVH Corp. is an apparel company. The Company operates through three segments: Calvin Klein, which consists of the Calvin Klein North America and Calvin Klein International segments; Tommy Hilfiger, which consists of the Tommy Hilfiger North America and Tommy Hilfiger International segments, and Heritage Brands, which consists of the Heritage Brands Wholesale and Heritage Brands Retail segments. The Company’s brand portfolio consists of various brand names, including Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW, Warner’s, Olga and Eagle, which are owned, and Speedo, Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, Sean John, MICHAEL Michael Kors, Michael Kors Collection and Chaps, which are licensed, as well as various other licensed and private label brands. The Company designs and markets dress shirts, neckwear, sportswear, jeanswear, intimate apparel, swim products and handbags, footwear and other related products.

Columbia Sportswear Company Profile

Columbia Sportswear Company is an apparel and footwear company. The Company designs, sources, markets and distributes outdoor lifestyle apparel, footwear, accessories and equipment under the Columbia, Mountain Hardwear, Sorel, prAna and other brands. Its geographic segments are the United States, Latin America and Asia Pacific (LAAP), Europe, Middle East and Africa (EMEA), and Canada. The Company develops and manages its merchandise in categories, including apparel, accessories and equipment, and footwear. It distributes its products through a mix of wholesale distribution channels, its own direct-to-consumer channels (retail stores and e-commerce), independent distributors and licensees. As of December 31, 2016, its products were sold in approximately 90 countries. In 59 of those countries, it sells to independent distributors to whom it has granted distribution rights. Contract manufacturers located outside the United States manufacture all of its products.

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