Levi Strauss & Co. (NYSE:LEVI – Get Free Report) and Industria de Diseno Textil (OTCMKTS:IDEXY – Get Free Report) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.
Dividends
Levi Strauss & Co. pays an annual dividend of $0.56 per share and has a dividend yield of 2.5%. Industria de Diseno Textil pays an annual dividend of $0.29 per share and has a dividend yield of 1.7%. Levi Strauss & Co. pays out 38.4% of its earnings in the form of a dividend. Industria de Diseno Textil pays out 52.7% 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. Levi Strauss & Co. has increased its dividend for 4 consecutive years. Levi Strauss & Co. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Levi Strauss & Co. has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Industria de Diseno Textil has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Levi Strauss & Co. | 0 | 3 | 12 | 0 | 2.80 |
| Industria de Diseno Textil | 0 | 0 | 1 | 5 | 3.83 |
Levi Strauss & Co. currently has a consensus target price of $26.69, suggesting a potential upside of 19.05%. Given Levi Strauss & Co.’s higher possible upside, research analysts plainly believe Levi Strauss & Co. is more favorable than Industria de Diseno Textil.
Insider & Institutional Ownership
69.1% of Levi Strauss & Co. shares are owned by institutional investors. 1.3% of Levi Strauss & Co. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Levi Strauss & Co. and Industria de Diseno Textil’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Levi Strauss & Co. | 9.20% | 25.08% | 8.19% |
| Industria de Diseno Textil | 15.40% | 32.94% | 17.22% |
Earnings and Valuation
This table compares Levi Strauss & Co. and Industria de Diseno Textil”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Levi Strauss & Co. | $6.28 billion | 1.39 | $578.10 million | $1.46 | 15.36 |
| Industria de Diseno Textil | $41.81 billion | 5.05 | $6.32 billion | $0.55 | 30.82 |
Industria de Diseno Textil has higher revenue and earnings than Levi Strauss & Co.. Levi Strauss & Co. 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.
About Levi Strauss & Co.
Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.
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.
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