Adidas (OTCMKTS:ADDYY) vs. Jerash Holdings (US) (NASDAQ:JRSH) Critical Review

Jerash Holdings (US) (NASDAQ:JRSH) and Adidas (OTCMKTS:ADDYY) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

3.4% of Jerash Holdings (US) shares are owned by institutional investors. 41.0% of Jerash Holdings (US) shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Jerash Holdings (US) and Adidas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jerash Holdings (US)	0	0	2	0	3.00
Adidas	1	4	10	1	2.69

Jerash Holdings (US) currently has a consensus price target of $6.00, suggesting a potential downside of 2.44%. Adidas has a consensus price target of $146.00, suggesting a potential upside of 79.78%. Given Adidas’ higher probable upside, analysts clearly believe Adidas is more favorable than Jerash Holdings (US).

Dividends

Jerash Holdings (US) pays an annual dividend of $0.20 per share and has a dividend yield of 3.3%. Adidas pays an annual dividend of $1.17 per share and has a dividend yield of 1.4%. Jerash Holdings (US) pays out 52.6% of its earnings in the form of a dividend. Adidas pays out 25.8% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jerash Holdings (US)	2.77%	7.61%	5.69%
Adidas	5.30%	22.35%	6.80%

Volatility & Risk

Jerash Holdings (US) has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Adidas has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jerash Holdings (US)	$166.26 million	0.47	$3.54 million	$0.38	16.18
Adidas	$28.06 billion	1.03	$1.52 billion	$4.54	17.89

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

Summary

Adidas beats Jerash Holdings (US) on 13 of the 17 factors compared between the two stocks.

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.

About Adidas

adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products in Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific, and Latin America. It offers footwear, apparel, and accessories and gear, such as bags and balls under the adidas brand; golf footwear and apparel under the adidas Golf brand; and outdoor footwear under the Five Ten brand. It sells its products through its own retail stores; mono-branded franchise stores and shop-in-shops; and wholesale and its e-commerce channels. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany.