Analyzing Industria de Diseno Textil (OTCMKTS:IDEXY) & Academy Sports and Outdoors (NASDAQ:ASO)

Academy Sports and Outdoors (NASDAQ:ASO) and Industria de Diseno Textil (OTCMKTS:IDEXY) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Academy Sports and Outdoors and Industria de Diseno Textil, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Academy Sports and Outdoors	0	9	6	1	2.50
Industria de Diseno Textil	0	1	1	2	3.25

Academy Sports and Outdoors presently has a consensus target price of $58.29, indicating a potential upside of 19.61%. Given Academy Sports and Outdoors’ higher probable upside, analysts clearly believe Academy Sports and Outdoors is more favorable than Industria de Diseno Textil.

Profitability

This table compares Academy Sports and Outdoors and Industria de Diseno Textil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Academy Sports and Outdoors	6.39%	18.36%	7.29%
Industria de Diseno Textil	15.54%	33.83%	17.67%

Earnings and Valuation

This table compares Academy Sports and Outdoors and Industria de Diseno Textil”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Academy Sports and Outdoors	$6.19 billion	0.48	$376.77 million	$6.00	8.12
Industria de Diseno Textil	$45.09 billion	4.14	$7.11 billion	$0.60	24.93

Industria de Diseno Textil has higher revenue and earnings than Academy Sports and Outdoors. Academy Sports and Outdoors is trading at a lower price-to-earnings ratio than Industria de Diseno Textil, indicating that it is currently the more affordable of the two stocks.

Dividends

Academy Sports and Outdoors pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. Industria de Diseno Textil pays an annual dividend of $0.31 per share and has a dividend yield of 2.1%. Academy Sports and Outdoors pays out 10.0% of its earnings in the form of a dividend. Industria de Diseno Textil pays out 51.7% 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. Academy Sports and Outdoors has raised its dividend for 3 consecutive years.

Volatility & Risk

Academy Sports and Outdoors has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Industria de Diseno Textil has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Summary

Industria de Diseno Textil beats Academy Sports and Outdoors on 11 of the 16 factors compared between the two stocks.

About Academy Sports and Outdoors

Academy Sports and Outdoors, Inc., through its subsidiaries, operates as a sporting goods and outdoor recreational retailer in the United States. The company outdoor division comprises camping products, such as coolers and drinkware, and camping accessories and equipment,; fishing products, including marine equipment and fishing rods, reels, and baits and equipment; and hunting products, which includes firearms, ammunition, archery and archery equipment, camouflage apparel, waders, shooting accessories, gun safes, optics, airguns, and hunting equipment. Its sports and recreation division offers fitness equipment, fitness accessories, and nutrition supplies; team and specialty sports equipment, including baseball, football, basketball, soccer, golf, racket sports, volleyball, backpacks, and sports bags; recreation products, which includes patio furniture, outdoor cooking, trampolines, play sets, watersports, and pet equipment, as well as wheeled goods including bicycles, skateboards, and other ride-on toys; and electronics and watches, as well as front-end products, such as consumables, batteries, etc. The company's apparel division provides outdoor and seasonal apparel, denim, work apparel, graphic t-shirts, and accessories; boys and girls outdoor, and athletic apparel; sporting and fitness apparel; and professional and collegiate team licensed apparel and accessories. Its footwear division offers casual shoes, slippers, seasonal footwear, and socks; work and western boots, shoes, and hunting footwear; boys and girls footwear; athletic footwear, such as running shoes, athletic lifestyle, and training shoes; and team and specialty sports footwear, and slides. The company sells its products under the Academy Sports + Outdoors, Magellan Outdoors, BCG, O'rageous, Game Winner, Outdoor Gourmet, and Freely brand names. Academy Sports and Outdoors, Inc. was founded in 1938 and is headquartered in Katy, Texas.

About Industria de Diseno Textil

Industria de Diseño Textil, S.A. engages in the retail and online distribution of clothing, footwear, accessories, and household products. The company sells its products under the Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home brands. It is also involved in the textile manufacturing, logistics, design, insurance, construction, and real estate businesses, as well as provides financial services. The company operates in Spain, rest of Europe, the Americas, Asia, and internationally. Industria de Diseño Textil, S.A. was founded in 1963 and is headquartered in A Coruña, Spain.