Innovative Designs (OTCMKTS:IVDN) and Hanesbrands (NYSE:HBI) Financial Contrast

Innovative Designs (OTCMKTS:IVDN) and Hanesbrands (NYSE:HBI) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Risk & Volatility

Innovative Designs has a beta of -2.99, indicating that its stock price is 399% less volatile than the S&P 500. Comparatively, Hanesbrands has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.

Insider and Institutional Ownership

80.3% of Hanesbrands shares are owned by institutional investors. 24.4% of Innovative Designs shares are owned by company insiders. Comparatively, 0.7% of Hanesbrands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Innovative Designs and Hanesbrands”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovative Designs	$1.38 million	4.26	$100,000.00	$0.03	5.09
Hanesbrands	$3.51 billion	0.66	-$320.43 million	$0.92	7.09

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

Analyst Recommendations

This is a summary of current ratings and price targets for Innovative Designs and Hanesbrands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovative Designs	0	0	0	0	0.00
Hanesbrands	0	5	1	0	2.17

Hanesbrands has a consensus target price of $6.60, indicating a potential upside of 1.15%. Given Hanesbrands’ stronger consensus rating and higher probable upside, analysts plainly believe Hanesbrands is more favorable than Innovative Designs.

Profitability

This table compares Innovative Designs and Hanesbrands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovative Designs	18.54%	29.89%	26.00%
Hanesbrands	9.34%	129.43%	5.60%

Summary

Hanesbrands beats Innovative Designs on 9 of the 14 factors compared between the two stocks.

About Innovative Designs

Innovative Designs, Inc. engages in manufacture and marketing of cold weather recreational and industrial clothing products in the United States and Canada. The company operates in two segments, Apparel and House Wrap. It offers arctic armor line products, including jackets, bibs, and gloves for ice fisherman, snowmobilers, utility workers, oil/gas pipeline workers, railroad workers, construction workers, ski resort workers, and police and first responders; and house wrap that provides barrier protection and moisture vapor transmission and insulation for the building construction industry. In addition, it offers INSULTEX material in bulk to non-competing customers; products that restore the waterproof character of the outer side of its arctic armor clothing; and cold weather headgears and base insulation clothing products. The company primarily sells its products through independent sales agents, agencies, retailers, and distributors, as well as through website. The company was incorporated in 2002 and is based in Pittsburgh, Pennsylvania.

About Hanesbrands

Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells a range of range of innerwear apparels for men, women, and children in the Americas, Europe, the Asia pacific, and internationally. The company operates through three segments: Innerwear, Activewear, and International. It sells men’s underwear, women’s panties, children’s underwear, and socks, as well as intimate apparel comprising bras and shapewear; home goods; activewear apparel comprising T-shirts, fleece, performance apparel, sport shirts, performance T-shirts and shorts, sports bras, teamwear, and thermals; and licensed logo apparel in collegiate bookstores and mass retail channels. The company licenses its Champion name for footwear and sports accessories. It offers its products under the Hanes, Champion, Maidenform, JMS/Just My Size, Bali, Polo Ralph Lauren, Playtex, Alternative, Gear for Sports, Comfortwash, Hanes Beefy-T, Bonds, Sheridan, Bras N Things, Wonderbra, Berlei, Zorba, Sol y Oro, Maidenform, Rinbros, Bellinda, and RITMO brand names through retailers, wholesalers, and third-party embellishers. Hanesbrands Inc. was founded in 1901 and is headquartered in Winston-Salem, North Carolina.