Comparing Jerash Holdings (US) (NASDAQ:JRSH) and Hugo Boss (OTCMKTS:BOSSY)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hugo Boss	$4.66 billion	0.63	$230.99 million	$0.72	11.85
Jerash Holdings (US)	$145.81 million	0.27	-$850,000.00	$0.06	51.50

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

Dividends

Hugo Boss pays an annual dividend of $0.21 per share and has a dividend yield of 2.5%. Jerash Holdings (US) pays an annual dividend of $0.20 per share and has a dividend yield of 6.5%. Hugo Boss pays out 29.2% of its earnings in the form of a dividend. Jerash Holdings (US) pays out 333.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hugo Boss	5.15%	15.57%	6.00%
Jerash Holdings (US)	0.45%	1.03%	0.79%

Risk and Volatility

Hugo Boss has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Jerash Holdings (US) has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hugo Boss	0	1	0	0	2.00
Jerash Holdings (US)	0	1	1	0	2.50

Jerash Holdings (US) has a consensus target price of $4.00, indicating a potential upside of 29.45%. Given Jerash Holdings (US)’s stronger consensus rating and higher possible upside, analysts plainly believe Jerash Holdings (US) is more favorable than Hugo Boss.

Institutional & Insider Ownership

3.4% of Jerash Holdings (US) shares are held by institutional investors. 42.7% of Jerash Holdings (US) shares are held by 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.

About Hugo Boss

Hugo Boss AG, together with its subsidiaries, provides apparels, shoes, and accessories for men and women worldwide. It also offers licensed products comprising of fragrances, eyewear, watches, children’s fashion, equestrian, and cycling. The company markets and sells its products under the BOSS and HUGO brand names through freestanding stores, shop-in-shops, factory outlets, multi-brand stores, and franchise business, as well as online retailers, distribution, and stores. Hugo Boss AG was founded in 1924 and is headquartered in Metzingen, Germany.

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.