Capri (NYSE:CPRI) versus Columbia Sportswear (NASDAQ:COLM) Financial Analysis

Columbia Sportswear (NASDAQ:COLM) and Capri (NYSE:CPRI) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Risk and Volatility

Columbia Sportswear has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Capri has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Profitability

This table compares Columbia Sportswear and Capri’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Columbia Sportswear	6.97%	11.71%	6.90%
Capri	6.12%	242.96%	7.54%

Insider & Institutional Ownership

47.8% of Columbia Sportswear shares are held by institutional investors. Comparatively, 84.3% of Capri shares are held by institutional investors. 51.9% of Columbia Sportswear shares are held by insiders. Comparatively, 2.6% of Capri shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Columbia Sportswear and Capri”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Columbia Sportswear	$3.40 billion	1.09	$177.22 million	$4.56	16.11
Capri	$3.47 billion	0.64	$137.00 million	$1.77	12.12

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

Analyst Ratings

This is a summary of current ratings for Columbia Sportswear and Capri, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Columbia Sportswear	1	3	2	0	2.17
Capri	1	9	4	2	2.44

Columbia Sportswear presently has a consensus price target of $66.40, indicating a potential downside of 9.62%. Capri has a consensus price target of $22.13, indicating a potential upside of 3.17%. Given Capri’s stronger consensus rating and higher probable upside, analysts plainly believe Capri is more favorable than Columbia Sportswear.

Summary

Capri beats Columbia Sportswear on 9 of the 15 factors compared between the two stocks.

About Columbia Sportswear

Columbia Sportswear Company designs, sources, markets and distributes outdoor and active-lifestyle apparel, footwear, accessories and equipment. Its products serve activities such as hiking, skiing, fishing and other outdoor pursuits, as well as everyday wear. The company’s portfolio includes the Columbia, SOREL, Mountain Hardwear and prAna brands. Its offerings range from jackets, shirts and pants to boots, shoes, backpacks and other outdoor accessories. Founded in 1938 as a hat distributor in Portland, Oregon, Columbia Sportswear has grown into a global business.

About Capri

Capri Holdings Limited is a global fashion group focused on designing, marketing and distributing luxury apparel, footwear, handbags, accessories and related products. Its portfolio includes Michael Kors and Jimmy Choo, whose products are sold through company-operated stores, e-commerce platforms and wholesale partners. The company serves customers in markets around the world, including North America, Europe and Asia. Its brands offer a range of products, including ready-to-wear clothing, shoes, bags, watches, eyewear, jewelry and fragrances.