Head-To-Head Review: Columbia Sportswear (COLM) versus PVH Corp. (PVH)
Columbia Sportswear (NASDAQ: COLM) and PVH Corp. (NYSE:PVH) are both mid-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
This is a summary of current recommendations and price targets for Columbia Sportswear and PVH Corp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Columbia Sportswear currently has a consensus price target of $64.46, indicating a potential upside of 3.24%. PVH Corp. has a consensus price target of $138.86, indicating a potential upside of 9.06%. Given PVH Corp.’s stronger consensus rating and higher probable upside, analysts clearly believe PVH Corp. is more favorable than Columbia Sportswear.
Columbia Sportswear pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. PVH Corp. pays an annual dividend of $0.15 per share and has a dividend yield of 0.1%. Columbia Sportswear pays out 26.5% of its earnings in the form of a dividend. PVH Corp. pays out 2.9% 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.
Valuation and Earnings
This table compares Columbia Sportswear and PVH Corp.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Columbia Sportswear||$2.41 billion||1.81||$319.52 million||$2.72||22.96|
|PVH Corp.||$8.41 billion||1.17||$1.14 billion||$5.23||24.34|
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.
Risk and Volatility
Columbia Sportswear has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, PVH Corp. has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.
Insider and Institutional Ownership
38.9% of Columbia Sportswear shares are held by institutional investors. Comparatively, 95.3% of PVH Corp. shares are held by institutional investors. 58.9% of Columbia Sportswear shares are held by company insiders. Comparatively, 1.3% of PVH Corp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Columbia Sportswear and PVH Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
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.
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.
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