Contrasting Jerash Holdings (US) (NASDAQ:JRSH) & NIKE (NYSE:NKE)

NIKE (NYSE:NKE) and Jerash Holdings (US) (NASDAQ:JRSH) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Dividends

NIKE pays an annual dividend of $1.64 per share and has a dividend yield of 3.9%. Jerash Holdings (US) pays an annual dividend of $0.20 per share and has a dividend yield of 4.0%. 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. Jerash Holdings (US) pays out 71.4% of its earnings in the form of a dividend. NIKE has raised its dividend for 22 consecutive years. Jerash Holdings (US) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

NIKE has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Jerash Holdings (US) has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Insider and Institutional Ownership

64.2% of NIKE shares are held by institutional investors. Comparatively, 3.4% of Jerash Holdings (US) shares are held by institutional investors. 1.1% of NIKE shares are held by company insiders. Comparatively, 41.0% of Jerash Holdings (US) shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for NIKE and Jerash Holdings (US), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NIKE	5	18	13	1	2.27
Jerash Holdings (US)	0	0	2	0	3.00

NIKE currently has a consensus target price of $53.53, suggesting a potential upside of 28.48%. Jerash Holdings (US) has a consensus target price of $5.00, suggesting a potential upside of 0.00%. Given NIKE’s higher probable upside, analysts plainly believe NIKE is more favorable than Jerash Holdings (US).

Profitability

This table compares NIKE and Jerash Holdings (US)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NIKE	6.70%	16.54%	6.21%
Jerash Holdings (US)	2.13%	5.57%	4.18%

Earnings and Valuation

This table compares NIKE and Jerash Holdings (US)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NIKE	$46.40 billion	1.33	$3.11 billion	$2.09	19.94
Jerash Holdings (US)	$166.26 million	0.38	$3.54 million	$0.28	17.86

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

Summary

NIKE beats Jerash Holdings (US) on 14 of the 18 factors compared between the two stocks.

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.

About Jerash Holdings (US)

Jerash Holdings (US), Inc., through its subsidiaries, manufactures and exports customized and ready-made sport and outerwear. The company offers t-shirts; jackets and pullover; pants and shorts; crew neck, polo shirts, and tank tops made from knitted fabric, as well as personal protective equipment. It serves various brand-name retailers in the United States, Hong Kong, Jordan, and internationally. The company was incorporated in 2016 and is headquartered in Fairfield, New Jersey.