Levi Strauss & Co. (NYSE:LEVI) versus PVH (NYSE:PVH) Head to Head Review

PVH (NYSE:PVH) and Levi Strauss & Co. (NYSE:LEVI) are both mid-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for PVH and Levi Strauss & Co., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PVH	2	6	6	0	2.29
Levi Strauss & Co.	0	4	12	0	2.75

PVH currently has a consensus target price of $86.55, suggesting a potential upside of 26.18%. Levi Strauss & Co. has a consensus target price of $27.43, suggesting a potential upside of 34.73%. Given Levi Strauss & Co.’s stronger consensus rating and higher possible upside, analysts plainly believe Levi Strauss & Co. is more favorable than PVH.

Institutional and Insider Ownership

97.3% of PVH shares are held by institutional investors. Comparatively, 69.1% of Levi Strauss & Co. shares are held by institutional investors. 1.5% of PVH shares are held by insiders. Comparatively, 1.1% of Levi Strauss & Co. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company 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%. Levi Strauss & Co. pays an annual dividend of $0.64 per share and has a dividend yield of 3.1%. PVH pays out -4.1% of its earnings in the form of a dividend. Levi Strauss & Co. pays out 39.5% 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. Levi Strauss & Co. has raised its dividend for 4 consecutive years. Levi Strauss & Co. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares PVH and Levi Strauss & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PVH	-1.89%	11.94%	5.04%
Levi Strauss & Co.	9.66%	25.79%	8.61%

Earnings & Valuation

This table compares PVH and Levi Strauss & Co.”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PVH	$8.95 billion	0.35	$25.30 million	($3.70)	-18.54
Levi Strauss & Co.	$6.28 billion	1.25	$578.10 million	$1.62	12.57

Levi Strauss & Co. has lower revenue, but higher earnings than PVH. PVH is trading at a lower price-to-earnings ratio than Levi Strauss & Co., indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

PVH has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500. Comparatively, Levi Strauss & Co. has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Summary

Levi Strauss & Co. beats PVH on 12 of the 17 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 Levi Strauss & Co.

Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.