Columbia Sportswear (NASDAQ: COLM) and G-III Apparel Group, LTD. (NASDAQ:GIII) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Dividends

Columbia Sportswear pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. G-III Apparel Group, LTD. does not pay a dividend. Columbia Sportswear pays out 25.8% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Columbia Sportswear and G-III Apparel Group, LTD.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Columbia Sportswear $2.38 billion 1.82 $191.89 million $2.79 22.15
G-III Apparel Group, LTD. $2.39 billion 0.50 $51.93 million $0.69 35.55

Columbia Sportswear has higher revenue, but lower earnings than G-III Apparel Group, LTD.. Columbia Sportswear is trading at a lower price-to-earnings ratio than G-III Apparel Group, LTD., indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Columbia Sportswear and G-III Apparel Group, LTD., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Columbia Sportswear 0 6 9 0 2.60
G-III Apparel Group, LTD. 1 3 7 0 2.55

Columbia Sportswear presently has a consensus price target of $64.92, suggesting a potential upside of 5.07%. G-III Apparel Group, LTD. has a consensus price target of $33.40, suggesting a potential upside of 36.16%. Given G-III Apparel Group, LTD.’s higher possible upside, analysts plainly believe G-III Apparel Group, LTD. is more favorable than Columbia Sportswear.

Profitability

This table compares Columbia Sportswear and G-III Apparel Group, LTD.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Columbia Sportswear 8.18% 12.30% 9.83%
G-III Apparel Group, LTD. 1.23% 4.65% 2.63%

Volatility and Risk

Columbia Sportswear has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, G-III Apparel Group, LTD. has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.

Institutional & Insider Ownership

39.2% of Columbia Sportswear shares are held by institutional investors. Comparatively, 99.4% of G-III Apparel Group, LTD. shares are held by institutional investors. 58.9% of Columbia Sportswear shares are held by company insiders. Comparatively, 9.7% of G-III Apparel Group, LTD. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Columbia Sportswear beats G-III Apparel Group, LTD. on 11 of the 16 factors compared between the two stocks.

About Columbia Sportswear

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.

About G-III Apparel Group, LTD.

G-III Apparel Group, Ltd. designs, manufactures and markets a range of apparel products. The Company operates through two segments: wholesale operations and retail operations. Its apparel products include outerwear, dresses, sportswear, swimwear, women’s suits and women’s performance wear, as well as women’s handbags, footwear, small leather goods, cold weather accessories and luggage. The Company’s owned brands include Donna Karan, DKNY, DKNY Jeans, Vilebrequin, G-III Sports by Carl Banks, Eliza J, Black Rivet and Jessica Howard. It has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld, Kenneth Cole, Cole Haan and Dockers brands. Through its team sports business, it has licenses with the National Football League, National Basketball Association, Major League Baseball and National Hockey League. It also operates retail stores under the Donna Karan, Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein Performance names.

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