Critical Comparison: ASICS (OTCMKTS:ASCCF) versus PVH (NYSE:PVH)

PVH (NYSE:PVH) and ASICS (OTCMKTS:ASCCF) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Institutional & Insider Ownership

97.3% of PVH shares are held by institutional investors. Comparatively, 22.2% of ASICS shares are held by institutional investors. 1.5% of PVH shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

PVH pays an annual dividend of $0.15 per share and has a dividend yield of 0.2%. ASICS pays an annual dividend of $13.55 per share and has a dividend yield of 45.3%. PVH pays out 4.7% of its earnings in the form of a dividend. ASICS pays out 7.9% 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for PVH and ASICS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PVH	3	6	7	0	2.25
ASICS	0	0	1	0	3.00

PVH presently has a consensus price target of $86.62, indicating a potential upside of 5.12%. Given PVH’s higher possible upside, equities analysts plainly believe PVH is more favorable than ASICS.

Earnings & Valuation

This table compares PVH and ASICS”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PVH	$8.95 billion	0.42	$25.30 million	$3.16	26.07
ASICS	N/A	N/A	N/A	$172.46	0.17

PVH has higher revenue and earnings than ASICS. ASICS is trading at a lower price-to-earnings ratio than PVH, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares PVH and ASICS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PVH	1.76%	10.87%	4.58%
ASICS	N/A	N/A	N/A

Summary

PVH beats ASICS on 10 of the 13 factors compared between the two stocks.

About PVH

PVH Corp. operates as an apparel company in the United States and internationally. The company operates through Tommy Hilfiger North America, Tommy Hilfiger International, Calvin Klein North America, Calvin Klein International, and Heritage Brands Wholesale segments. It designs and markets men's, women's, and children's branded apparel, footwear and accessories, underwear, sleepwear, outerwear, home furnishings, luggage, dresses, suits and swimwear, activewear, sportswear, socks and accessories, outerwear, golf products, footwear, watches and jewelry, eyeglasses and non-ophthalmic sunglasses, jeans wear, performance apparel, intimate apparel, dress shirts, handbags, fragrance, small leather goods, and other related products; and men's and boy's tailored clothing products, duvets, pillows, mattress pads and toppers, and feather beds. The company offers its products under its own brands, such as TOMMY HILFIGER, TOMMY JEANS, Calvin Klein, CK Calvin Klein, Calvin Klein Jeans, Calvin Klein Underwear, and Calvin Klein Performance, as well as various other owned, licensed, and private label brands. It distributes its products at wholesale in department, chain, and specialty stores; through warehouse clubs, mass market, and off-price and independent retailers; and through company-operated full-price, outlet stores, and concession locations; and through digital commerce sites. PVH Corp. was founded in 1881 and is based in New York, New York.

About ASICS

ASICS Corporation manufactures and sells sporting goods in Japan, North America, Europe, China, Oceania, Southeast and South Asia, and internationally. It offers running shoes, apparel, and sports accessories and equipment. The company sells its products under the ASICS, ASICSTIGER, and Onitsuka Tiger brands through retail stores, as well as online. ASICS Corporation was incorporated in 1943 and is headquartered in Kobe, Japan.