Grasim Industries (OTCMKTS:GRSXY) vs. Columbia Sportswear (NASDAQ:COLM) Critical Contrast

Columbia Sportswear (NASDAQ:COLM) and Grasim Industries (OTCMKTS:GRSXY) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Dividends

Columbia Sportswear pays an annual dividend of $1.20 per share and has a dividend yield of 2.1%. Grasim Industries pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. Columbia Sportswear pays out 36.3% of its earnings in the form of a dividend. Grasim Industries pays out 13.3% 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.

Earnings and Valuation

This table compares Columbia Sportswear and Grasim Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Columbia Sportswear	$3.42 billion	0.88	$223.27 million	$3.31	16.93
Grasim Industries	$17.74 billion	0.75	$437.27 million	$0.75	26.00

Grasim Industries has higher revenue and earnings than Columbia Sportswear. Columbia Sportswear is trading at a lower price-to-earnings ratio than Grasim Industries, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Columbia Sportswear has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Grasim Industries has a beta of -0.24, meaning that its share price is 124% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Columbia Sportswear and Grasim Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Columbia Sportswear	1	6	2	0	2.11
Grasim Industries	0	0	0	0	0.00

Columbia Sportswear currently has a consensus price target of $55.80, indicating a potential downside of 0.41%. Given Columbia Sportswear’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Columbia Sportswear is more favorable than Grasim Industries.

Profitability

This table compares Columbia Sportswear and Grasim Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Columbia Sportswear	5.45%	12.45%	7.50%
Grasim Industries	2.72%	5.47%	1.70%

Institutional & Insider Ownership

47.8% of Columbia Sportswear shares are owned by institutional investors. 48.3% of Columbia Sportswear shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Columbia Sportswear beats Grasim Industries on 12 of the 16 factors compared between the two stocks.

About Columbia Sportswear

Columbia Sportswear Company, together with its subsidiaries, designs, develops, markets, and distributes outdoor, active, and everyday lifestyle apparel, footwear, accessories, and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. The company provides apparel, accessories, and equipment for hiking, trail running, snow, fishing, hunting, mountaineering, climbing, skiing and snowboarding, trail, and outdoor activities. It offers footwear products that include lightweight hiking boot; trail running shoes; rugged cold weather boots; sandals and shoes for use in water activities; and footwear for lifestyle wear. In addition, it owned network of branded and outlet retail stores; brand-specific e-commerce sites; and concession or franchise-based arrangements with third parties at branded outlet and shop-in-shop retail locations, as well as through independently operated specialty outdoor and sporting goods stores, sporting goods chains, department store chains, internet retailers, and international distributors. The company sells its products under the Columbia, Mountain Hard Wear, SOREL, and prAna brand names. Columbia Sportswear Company was founded in 1938 and is headquartered in Portland, Oregon.

About Grasim Industries

Grasim Industries Limited operates in fibre, yarn, pulp, chemicals, textile, fertilizers, and insulators businesses in India and internationally. The company operates through Viscose, Chemicals, Cement, Financial Services, and Others segments. It provides viscose staple fiber, a man-made biodegradable fiber for use in apparels, home textiles, dress materials, knit wear products, and non-woven applications; wood pulp products; viscose filament yarn, a natural fibre for manufacturing fabrics such as georgettes, crepes, chiffons, and others; and textile products, such as linen and wool. The company offers various chemical products, including chlor-alkali and epoxy resin products. In addition, it provides electrical insulators for transmission lines and substations, as well as equipment and railways. Further, the company offers grey cement; white cement; ready mix concrete; and cement-based putty. Additionally, it provides various financial services comprising non-bank financial, life insurance, asset management, housing finance, equity broking, wealth management, general insurance advisory, and health insurance services. The company involved in solar power designing, engineering procurement, and commissioning business. Grasim Industries Limited was incorporated in 1947 and is based in Mumbai, India.