Financial Comparison: PVH (NYSE:PVH) vs. NIKE (NYSE:NKE)

PVH (NYSE:PVH) and NIKE (NYSE:NKE) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Risk & Volatility

PVH has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500. Comparatively, NIKE has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Earnings and Valuation

This table compares PVH and NIKE”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PVH	$8.95 billion	0.39	$25.30 million	($3.70)	-20.55
NIKE	$46.40 billion	1.15	$3.11 billion	$2.09	17.27

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

Dividends

PVH pays an annual dividend of $0.15 per share and has a dividend yield of 0.2%. NIKE pays an annual dividend of $1.64 per share and has a dividend yield of 4.5%. PVH pays out -4.1% of its earnings in the form of a dividend. NIKE pays out 78.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NIKE has raised its dividend for 22 consecutive years. NIKE is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares PVH and NIKE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PVH	-1.89%	11.94%	5.04%
NIKE	6.70%	16.54%	6.21%

Institutional and Insider Ownership

97.3% of PVH shares are owned by institutional investors. Comparatively, 64.2% of NIKE shares are owned by institutional investors. 1.5% of PVH shares are owned by insiders. Comparatively, 1.1% of NIKE shares are owned by 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.

Analyst Ratings

This is a summary of recent ratings and price targets for PVH and NIKE, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PVH	3	5	6	0	2.21
NIKE	6	21	9	1	2.14

PVH presently has a consensus target price of $86.55, suggesting a potential upside of 13.82%. NIKE has a consensus target price of $48.77, suggesting a potential upside of 35.11%. Given NIKE’s higher possible upside, analysts clearly believe NIKE is more favorable than PVH.

Summary

NIKE beats PVH on 13 of the 18 factors compared between the two stocks.

About PVH

PVH Corp. operates as an apparel company in the United States and internationally. The company operates through Tommy Hilfiger North America, Tommy Hilfiger International, Calvin Klein North America, Calvin Klein International, and Heritage Brands Wholesale segments. It designs and markets men's, women's, and children's branded apparel, footwear and accessories, underwear, sleepwear, outerwear, home furnishings, luggage, dresses, suits and swimwear, activewear, sportswear, socks and accessories, outerwear, golf products, footwear, watches and jewelry, eyeglasses and non-ophthalmic sunglasses, jeans wear, performance apparel, intimate apparel, dress shirts, handbags, fragrance, small leather goods, and other related products; and men's and boy's tailored clothing products, duvets, pillows, mattress pads and toppers, and feather beds. The company offers its products under its own brands, such as TOMMY HILFIGER, TOMMY JEANS, Calvin Klein, CK Calvin Klein, Calvin Klein Jeans, Calvin Klein Underwear, and Calvin Klein Performance, as well as various other owned, licensed, and private label brands. It distributes its products at wholesale in department, chain, and specialty stores; through warehouse clubs, mass market, and off-price and independent retailers; and through company-operated full-price, outlet stores, and concession locations; and through digital commerce sites. PVH Corp. was founded in 1881 and is based in New York, New York.

About NIKE

NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also sells a line of performance equipment and accessories comprising bags, sport balls, socks, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. In addition, the company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel; and licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.