Critical Analysis: Savers Value Village (NYSE:SVV) & Gildan Activewear (NYSE:GIL)

Gildan Activewear (NYSE:GIL) and Savers Value Village (NYSE:SVV) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Insider & Institutional Ownership

82.8% of Gildan Activewear shares are held by institutional investors. Comparatively, 98.8% of Savers Value Village shares are held by institutional investors. 2.0% of Gildan Activewear shares are held by company insiders. Comparatively, 3.1% of Savers Value Village shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Gildan Activewear and Savers Value Village”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gildan Activewear	$3.62 billion	3.44	$398.88 million	$2.62	25.65
Savers Value Village	$1.62 billion	0.85	$22.64 million	$0.14	63.52

Gildan Activewear has higher revenue and earnings than Savers Value Village. Gildan Activewear is trading at a lower price-to-earnings ratio than Savers Value Village, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Gildan Activewear and Savers Value Village, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gildan Activewear	1	2	13	0	2.75
Savers Value Village	1	3	4	1	2.56

Gildan Activewear currently has a consensus price target of $80.08, indicating a potential upside of 19.14%. Savers Value Village has a consensus price target of $14.43, indicating a potential upside of 62.25%. Given Savers Value Village’s higher possible upside, analysts plainly believe Savers Value Village is more favorable than Gildan Activewear.

Profitability

This table compares Gildan Activewear and Savers Value Village’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gildan Activewear	11.02%	27.32%	9.58%
Savers Value Village	1.35%	11.92%	2.59%

Volatility & Risk

Gildan Activewear has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Savers Value Village has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.

Summary

Gildan Activewear beats Savers Value Village on 10 of the 15 factors compared between the two stocks.

About Gildan Activewear

Gildan Activewear Inc. manufactures and sells various apparel products in the United States, North America, Europe, Asia-Pacific, and Latin America. It provides various activewear products, including T-shirts, fleece tops and bottoms, and sports shirts under the Gildan, Gildan Performance, Gildan Hammer, Glidan Softstyle, Gildan Heavy Cotton, Gildan Ultra Cotton, Gildan DryBlend, Gildan HeavyBlend, Comfort Colors, and American Apparel brands. The company also offers hosiery products comprising athletic; dress; and casual, liner, therapeutic, and workwear socks under the Gildan, Under Armour, GoldToe, Signature Gold by Goldtoe, Peds, MediPeds, All Pro, and GoldTeo Edition TM brands. In addition, it provides men's and boys' underwear products, and ladies panties under the Gildan and Gildan Platinum brands. The company sells its products to wholesale distributors, screen printers, and embellishers, as well as to retailers and lifestyle brand companies. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was founded in 1946 and is headquartered in Montreal, Canada.

About Savers Value Village

Savers Value Village, Inc. sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Value Village Boutique, Village des Valeurs, Unique, and 2nd Avenue brands. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners and then processes, selects, prices, merchandises, and sells them in its stores. It serves retail and wholesale customers. The company was formerly known as S-Evergreen Holding LLC and changed its name to Savers Value Village, Inc. in January 2022. Savers Value Village, Inc. was founded in 1954 and is based in Bellevue, Washington.