adidas (OTCMKTS:ADDYY – Get Free Report) and adidas (OTCMKTS:ADDDF – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.
Dividends
adidas pays an annual dividend of $0.24 per share and has a dividend yield of 0.2%. adidas pays an annual dividend of $1.13 per share and has a dividend yield of 0.6%. adidas pays out 109.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. adidas pays out 37.9% of its earnings in the form of a dividend. adidas is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares adidas and adidas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| adidas | 0.42% | -1.57% | -0.44% |
| adidas | N/A | N/A | N/A |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| adidas | 2 | 11 | 8 | 0 | 2.29 |
| adidas | 0 | 0 | 0 | 0 | N/A |
adidas currently has a consensus target price of $134.13, suggesting a potential upside of 38.55%. Given adidas’ higher possible upside, equities analysts plainly believe adidas is more favorable than adidas.
Insider & Institutional Ownership
0.1% of adidas shares are owned by institutional investors. Comparatively, 37.4% of adidas shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares adidas and adidas’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| adidas | $23.72 billion | 1.56 | $644.80 million | $0.22 | 440.04 |
| adidas | N/A | N/A | N/A | $2.97 | 65.32 |
adidas has higher revenue and earnings than adidas. adidas 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 adidas on 6 of the 11 factors compared between the two stocks.
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. It sells its products through 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.
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. It sells its products through 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.
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