Reviewing Adidas (OTCMKTS:ADDYY) & Hermes International (OTCMKTS:HESAY)

Hermes International (OTCMKTS:HESAY) and Adidas (OTCMKTS:ADDYY) are both large-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Dividends

Hermes International pays an annual dividend of $1.44 per share and has a dividend yield of 0.8%. Adidas pays an annual dividend of $1.17 per share and has a dividend yield of 1.3%. Adidas pays out 25.8% of its earnings in the form of a dividend.

Risk & Volatility

Hermes International has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Adidas has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Hermes International and Adidas, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hermes International	0	3	1	2	2.83
Adidas	1	3	9	0	2.62

Adidas has a consensus price target of $146.02, suggesting a potential upside of 60.30%. Given Adidas’ higher probable upside, analysts clearly believe Adidas is more favorable than Hermes International.

Valuation & Earnings

This table compares Hermes International and Adidas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hermes International	$18.10 billion	10.64	$5.12 billion	N/A	N/A
Adidas	$28.06 billion	1.16	$1.52 billion	$4.54	20.06

Hermes International has higher earnings, but lower revenue than Adidas.

Profitability

This table compares Hermes International and Adidas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hermes International	N/A	N/A	N/A
Adidas	5.30%	22.53%	6.87%

Summary

Adidas beats Hermes International on 8 of the 13 factors compared between the two stocks.

About Hermes International

Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods. The company offers leather goods and saddlery, such as bags for men and women, travel articles, small leather goods and accessories, saddles, bridles, and a full range of equestrian products and clothing; ready-to-wear garments for men and women; and accessories, including jewelry, belts, hats, gloves, the Internet of Things products, and shoes. It also provides silk and textiles for men and women; art of living and tableware products; perfumes; and watches. In addition, the company is also involved in weaving, engraving, printing, dyeing, finishing, and producing textiles; and purchasing, tanning, dyeing, finishing, and selling precious leathers. It sells its products through a network of stores worldwide. The company also sells watches, perfumes, and tableware through a network of specialized stores. Hermès International Société en commandite par actions was founded in 1837 and is based in Paris, France. Hermès International Société en commandite par actions operates as a subsidiary of H51 SAS.

About Adidas

adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products in Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific, and Latin America. It offers footwear, apparel, and accessories and gear, such as bags and balls under the adidas brand; golf footwear and apparel under the adidas Golf brand; and outdoor footwear under the Five Ten brand. It sells its products through its own retail stores; mono-branded franchise stores and shop-in-shops; and wholesale and its e-commerce channels. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany.