Adidas (OTCMKTS:ADDYY – Get Free Report) and Birkenstock (NYSE:BIRK – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.
Insider and Institutional Ownership
19.9% of Birkenstock shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Adidas and Birkenstock, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Adidas | 0 | 2 | 4 | 3 | 3.11 |
| Birkenstock | 0 | 1 | 14 | 1 | 3.00 |
Earnings and Valuation
This table compares Adidas and Birkenstock”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Adidas | $25.63 billion | 1.53 | $826.72 million | $3.67 | 29.85 |
| Birkenstock | $1.96 billion | 4.08 | $207.85 million | $1.80 | 23.63 |
Adidas has higher revenue and earnings than Birkenstock. Birkenstock is trading at a lower price-to-earnings ratio than Adidas, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Adidas has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Birkenstock has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.
Profitability
This table compares Adidas and Birkenstock’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Adidas | 4.93% | 20.68% | 5.99% |
| Birkenstock | 15.21% | 11.52% | 6.27% |
Summary
Adidas beats Birkenstock on 7 of the 13 factors compared between the two stocks.
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.
About Birkenstock
Birkenstock Holding plc manufactures and sells footwear products. It also offers sandals, shoes, closed-toe silhouettes, skincare products, and accessories. The company sells its products through e-commerce sites and a network of owned retail stores, as well as business-to-business channels. It operates in the United States, Brazil, Canada, Mexico, Europe, APMA, and internationally. Birkenstock Holding plc was founded in 1774 and is based in London, the United Kingdom. Birkenstock Holding plc is a subsidiary of BK LC Lux MidCo S.à r.l.
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