Lakeland Industries (NASDAQ: LAKE) and Hanesbrands (NYSE:HBI) are both industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Lakeland Industries 6.31% 7.87% 6.54%
Hanesbrands 9.02% 64.80% 10.11%

Volatility & Risk

Lakeland Industries has a beta of -0.12, suggesting that its stock price is 112% less volatile than the S&P 500. Comparatively, Hanesbrands has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Insider and Institutional Ownership

42.4% of Lakeland Industries shares are held by institutional investors. Comparatively, 94.3% of Hanesbrands shares are held by institutional investors. 7.8% of Lakeland Industries shares are held by company insiders. Comparatively, 1.1% of Hanesbrands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Lakeland Industries and Hanesbrands’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lakeland Industries $88.78 million 1.13 $10.64 million $0.77 17.99
Hanesbrands $6.36 billion 1.40 $1.05 billion $1.52 16.05

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Lakeland Industries and Hanesbrands, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lakeland Industries 0 0 1 0 3.00
Hanesbrands 0 4 7 0 2.64

Lakeland Industries presently has a consensus target price of $18.00, suggesting a potential upside of 29.96%. Hanesbrands has a consensus target price of $27.30, suggesting a potential upside of 11.93%. Given Lakeland Industries’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Lakeland Industries is more favorable than Hanesbrands.

Dividends

Hanesbrands pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. Lakeland Industries does not pay a dividend. Hanesbrands pays out 39.5% of its earnings in the form of a dividend. Lakeland Industries has increased its dividend for 3 consecutive years.

Summary

Hanesbrands beats Lakeland Industries on 11 of the 17 factors compared between the two stocks.

Lakeland Industries Company Profile

Lakeland Industries, Inc. (Lakeland) manufactures and sells a line of safety garments and accessories for the industrial and public protective clothing market. The Company’s product categories include limited use/disposable protective clothing; high-end chemical protective suits; firefighting, flame resistant personal protective equipment (FR PPE) and heat protective apparel; reusable woven garments; high visibility clothing, and glove and sleeves. The Company’s products are sold by its in-house customer service group, its regional sales managers and independent sales representatives to a network of over 1,200 North American safety and mill supply distributors. These distributors in turn supply end user industrial customers, such as integrated oil, chemical/petrochemical, utilities, automobile, steel, glass, construction, smelting, munition plants, janitorial, pharmaceutical, mortuaries and high technology electronics manufacturers, as well as scientific and medical laboratories.

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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