Reviewing H & M Hennes & Mauritz AB (publ) (OTCMKTS:HNNMY) and Wacoal (OTCMKTS:WACLY)

H & M Hennes & Mauritz AB (publ) (OTCMKTS:HNNMYGet Rating) and Wacoal (OTCMKTS:WACLYGet Rating) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Institutional & Insider Ownership

0.0% of H & M Hennes & Mauritz AB (publ) shares are held by institutional investors. 0.8% of Wacoal shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

H & M Hennes & Mauritz AB (publ) pays an annual dividend of $0.08 per share and has a dividend yield of 2.8%. Wacoal pays an annual dividend of $2.38 per share and has a dividend yield of 2.3%. H & M Hennes & Mauritz AB (publ) pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Wacoal pays out -267.4% of its earnings in the form of a dividend.

Risk and Volatility

H & M Hennes & Mauritz AB (publ) has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Wacoal has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for H & M Hennes & Mauritz AB (publ) and Wacoal, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
H & M Hennes & Mauritz AB (publ) 6 7 4 0 1.88
Wacoal 0 0 0 0 N/A

H & M Hennes & Mauritz AB (publ) presently has a consensus price target of $106.00, indicating a potential upside of 3,658.87%. Given H & M Hennes & Mauritz AB (publ)’s higher probable upside, research analysts plainly believe H & M Hennes & Mauritz AB (publ) is more favorable than Wacoal.

Profitability

This table compares H & M Hennes & Mauritz AB (publ) and Wacoal’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
H & M Hennes & Mauritz AB (publ) 1.81% 7.60% 2.19%
Wacoal -0.75% -0.65% -0.48%

Earnings and Valuation

This table compares H & M Hennes & Mauritz AB (publ) and Wacoal’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
H & M Hennes & Mauritz AB (publ) $22.17 billion 0.91 $357.67 million $0.06 47.00
Wacoal $1.40 billion 0.90 -$13.15 million ($0.89) -115.19

H & M Hennes & Mauritz AB (publ) has higher revenue and earnings than Wacoal. Wacoal is trading at a lower price-to-earnings ratio than H & M Hennes & Mauritz AB (publ), indicating that it is currently the more affordable of the two stocks.

Summary

H & M Hennes & Mauritz AB (publ) beats Wacoal on 13 of the 15 factors compared between the two stocks.

About H & M Hennes & Mauritz AB (publ)

(Get Rating)

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, teenagers, children, and babies worldwide. It offers sportswear, shoes, bags, beauty products, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, COS, Weekday, Monki, & Other Stories, ARKET, Afound, Singular Society, Creator Studio, and Sellpy brand names. H & M Hennes & Mauritz AB (publ) was founded in 1947 and is headquartered in Stockholm, Sweden.

About Wacoal

(Get Rating)

Wacoal Holdings Corp. is involved in the manufacture, wholesale, and retail sale of intimate apparel, outerwear, sportswear, and other textile products and accessories in Japan, Asia, Oceania, the Americas, and Europe. It operates through Wacoal Business (Domestic), Wacoal Business (Overseas), Peach John Business, and Other Businesses segments. The company offers intimate apparel mainly women's foundation garments, lingerie, nightwear and children's underwear; and outerwear, sportswear, and other textile products and accessories. In addition, the company engages in the restaurant businesses; cultural and service-related businesses; and manufacture and sale of mannequins and fixtures, interior design work, and other textile-related businesses. The company was founded in 1946 and is headquartered in Kyoto, Japan.

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