Hugo Boss (OTCMKTS:BOSSY) & Teijin (OTCMKTS:TINLY) Critical Analysis

Hugo Boss (OTCMKTS:BOSSY) and Teijin (OTCMKTS:TINLY) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for Hugo Boss and Teijin, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hugo Boss	0	2	0	0	2.00
Teijin	0	0	0	0	0.00

Dividends

Hugo Boss pays an annual dividend of $0.21 per share and has a dividend yield of 2.4%. Teijin pays an annual dividend of $0.19 per share and has a dividend yield of 2.3%. Hugo Boss pays out 29.2% of its earnings in the form of a dividend. Teijin pays out -10.7% 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.

Valuation and Earnings

This table compares Hugo Boss and Teijin”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hugo Boss	$4.66 billion	0.64	$230.99 million	$0.72	12.08
Teijin	$6.60 billion	0.24	$187.09 million	($1.77)	-4.72

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

Profitability

This table compares Hugo Boss and Teijin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hugo Boss	5.31%	15.59%	6.13%
Teijin	N/A	N/A	N/A

Risk and Volatility

Hugo Boss has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Teijin has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500.

Summary

Hugo Boss beats Teijin on 10 of the 12 factors compared between the two stocks.

About Hugo Boss

Hugo Boss AG, together with its subsidiaries, provides apparels, shoes, and accessories for men and women worldwide. It also offers licensed products comprising of fragrances, eyewear, watches, children’s fashion, equestrian, and cycling. The company markets and sells its products under the BOSS and HUGO brand names through freestanding stores, shop-in-shops, factory outlets, multi-brand stores, and franchise business, as well as online retailers, distribution, and stores. Hugo Boss AG was founded in 1924 and is headquartered in Metzingen, Germany.

About Teijin

Teijin Limited engages in the fibers, films and sheets, composites, healthcare, and IT businesses worldwide. It offers aramid fibers and polyethylene materials; carbon fibers, composite materials, and oxidized PAN fibers; polycarbonate sheets and films; high-density polyethylene porous films and materials; and microporous films. The company also provides PC resins, polyphenylene sulfide resins, molded parts, and additives; lightweight glass and carbon fiber reinforced composites for automotive applications; and polytrimethylene telephthalate products, artificial leather materials, polyester nanofibers, and recycled polyester fibers. In addition, it offers pharmaceuticals for bone and joint, respiratory, cardiovascular and metabolic, and other diseases; home oxygen therapy, non-invasive positive pressure ventilation, rehabilitation, and sleep disordered breathing related devices, as well as sonic accelerated fracture healing system and community-based integrated care system; and orthopedic implantable devices, and functional food ingredients. Further, the company provides Recopic, a radio-frequency identification technology for inventory management. Additionally, it develops and implements engineering solutions for various issues, such as environmental pollution, energy supply stability, and aging-related workforce population decline. Teijin Limited was incorporated in 1918 and is headquartered in Tokyo, Japan.