Critical Analysis: Columbia Sportswear (COLM) versus Ever-Glory International Group (EVK)

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Columbia Sportswear (NASDAQ:COLM) and Ever-Glory International Group (NASDAQ:EVK) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Volatility & Risk

Columbia Sportswear has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Ever-Glory International Group has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Dividends

Columbia Sportswear pays an annual dividend of $0.96 per share and has a dividend yield of 1.1%. Ever-Glory International Group does not pay a dividend. Columbia Sportswear pays out 32.2% of its earnings in the form of a dividend. Columbia Sportswear has raised its dividend for 5 consecutive years.

Valuation & Earnings

This table compares Columbia Sportswear and Ever-Glory International Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Columbia Sportswear $2.47 billion 2.56 $105.12 million $2.98 30.65
Ever-Glory International Group $415.58 million 0.14 $12.45 million N/A N/A

Columbia Sportswear has higher revenue and earnings than Ever-Glory International Group.

Profitability

This table compares Columbia Sportswear and Ever-Glory International Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Columbia Sportswear 5.56% 15.43% 11.52%
Ever-Glory International Group 2.84% 12.52% 5.17%

Analyst Recommendations

This is a breakdown of current ratings for Columbia Sportswear and Ever-Glory International Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Columbia Sportswear 0 8 8 0 2.50
Ever-Glory International Group 0 0 0 0 N/A

Columbia Sportswear presently has a consensus target price of $91.31, indicating a potential downside of 0.02%. Given Columbia Sportswear’s higher probable upside, equities analysts clearly believe Columbia Sportswear is more favorable than Ever-Glory International Group.

Insider and Institutional Ownership

39.8% of Columbia Sportswear shares are owned by institutional investors. Comparatively, 0.6% of Ever-Glory International Group shares are owned by institutional investors. 56.7% of Columbia Sportswear shares are owned by company insiders. Comparatively, 33.8% of Ever-Glory International Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Columbia Sportswear beats Ever-Glory International Group on 13 of the 15 factors compared between the two stocks.

Columbia Sportswear Company Profile

Columbia Sportswear Company, together with its subsidiaries, designs, sources, markets, and distributes outdoor and active lifestyle apparel, footwear, accessories, and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. The company provides apparel, accessories, and equipment that are used various outdoor activities, such as skiing, snowboarding, hiking, climbing, mountaineering, camping, hunting, fishing, trail running, water sports, yoga, golf, and adventure travel for men and women under the Columbia, Mountain Hardwear, SOREL, and prAna brands, as well as for youth under the Columbia brand name. It also offers footwear products, including hiking boots, trail running shoes, rugged cold weather boots, sandals, and casual shoes for men, women, and youth under the Columbia and SOREL brands. The company sells its products through wholesale distribution channels, direct-to-consumer channels, independent distributors, and licensees, as well as directly to consumers through its network of branded and outlet retail stores, and online. As of December 31, 2017, it operated 105 outlet retail stores and 24 branded retail stores in the United States; 119 concession-based, branded, outlet, and shop-in-shop locations in Japan; 162 concession-based, branded, outlet, and shop-in-shop locations in Korea; 24 outlet, shop-in-shop and concession-based locations, as well as 1 branded retail store in various locations in Western Europe; and 6 outlet retail stores in Canada. The company was founded in 1938 and is headquartered in Portland, Oregon.

Ever-Glory International Group Company Profile

Ever-Glory International Group, Inc. manufactures, distributes, and retails apparel in the People's Republic of China, Germany, the United Kingdom, rest of Europe, Japan, and the United States. It operates in two segments, Wholesale and Retail. The company primarily offers casual wear, outerwear, and sportswear. Its products include coats, jackets, slacks, skirts, shirts, trousers, and jeans for women; vests, jackets, trousers, skiwear, shirts, coats, and jeans for men; and coats, vests, down jackets, trousers, knitwear, and jeans for children. The company offers its woman apparel under the La Go Go, Velwin, Sea To Sky, and idole brands. Ever-Glory International Group, Inc. provides its products directly to consumers through retail stores, as well as online stores at Tmall, Dangdang mall, JD.com and VIP.com, etc. As of December 31, 2017, it operated 1,400 stores, including 79 flagship stores as stores-within-a-store in large and mid-tier department stores located in approximately 20 provinces in China. Ever-Glory International Group, Inc. is based in Nanjing, the People's Republic of China.

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