Head to Head Review: Gildan Activewear (NYSE:GIL) vs. Innovative Designs (OTCMKTS:IVDN)

Innovative Designs (OTCMKTS:IVDN) and Gildan Activewear (NYSE:GIL) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Risk & Volatility

Innovative Designs has a beta of -3, meaning that its share price is 400% less volatile than the S&P 500. Comparatively, Gildan Activewear has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Innovative Designs and Gildan Activewear, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovative Designs	0	0	0	0	0.00
Gildan Activewear	0	2	12	1	2.93

Gildan Activewear has a consensus target price of $72.15, indicating a potential upside of 19.77%. Given Gildan Activewear’s stronger consensus rating and higher possible upside, analysts clearly believe Gildan Activewear is more favorable than Innovative Designs.

Insider and Institutional Ownership

82.8% of Gildan Activewear shares are owned by institutional investors. 24.4% of Innovative Designs shares are owned by company insiders. Comparatively, 2.0% of Gildan Activewear shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Innovative Designs and Gildan Activewear”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovative Designs	$1.38 million	4.49	$100,000.00	$0.03	5.37
Gildan Activewear	$3.27 billion	2.75	$400.86 million	$3.13	19.25

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

Profitability

This table compares Innovative Designs and Gildan Activewear’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovative Designs	18.54%	29.89%	26.00%
Gildan Activewear	14.13%	35.53%	13.06%

Summary

Gildan Activewear beats Innovative Designs on 11 of the 15 factors compared between the two stocks.

About Innovative Designs

Innovative Designs, Inc. engages in manufacture and marketing of cold weather recreational and industrial clothing products in the United States and Canada. The company operates in two segments, Apparel and House Wrap. It offers arctic armor line products, including jackets, bibs, and gloves for ice fisherman, snowmobilers, utility workers, oil/gas pipeline workers, railroad workers, construction workers, ski resort workers, and police and first responders; and house wrap that provides barrier protection and moisture vapor transmission and insulation for the building construction industry. In addition, it offers INSULTEX material in bulk to non-competing customers; products that restore the waterproof character of the outer side of its arctic armor clothing; and cold weather headgears and base insulation clothing products. The company primarily sells its products through independent sales agents, agencies, retailers, and distributors, as well as through website. The company was incorporated in 2002 and is based in Pittsburgh, Pennsylvania.

About Gildan Activewear

Gildan Activewear Inc. manufactures and sells various apparel products in the United States, North America, Europe, Asia-Pacific, and Latin America. It provides various activewear products, including T-shirts, fleece tops and bottoms, and sports shirts under the Gildan, Gildan Performance, Gildan Hammer, Glidan Softstyle, Gildan Heavy Cotton, Gildan Ultra Cotton, Gildan DryBlend, Gildan HeavyBlend, Comfort Colors, and American Apparel brands. The company also offers hosiery products comprising athletic; dress; and casual, liner, therapeutic, and workwear socks under the Gildan, Under Armour, GoldToe, Signature Gold by Goldtoe, Peds, MediPeds, All Pro, and GoldTeo Edition TM brands. In addition, it provides men's and boys' underwear products, and ladies panties under the Gildan and Gildan Platinum brands. The company sells its products to wholesale distributors, screen printers, and embellishers, as well as to retailers and lifestyle brand companies. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was founded in 1946 and is headquartered in Montreal, Canada.