Reviewing Hanesbrands (NYSE:HBI) & Savers Value Village (NYSE:SVV)

Hanesbrands (NYSE:HBI) and Savers Value Village (NYSE:SVV) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Hanesbrands and Savers Value Village, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hanesbrands	0	3	1	0	2.25
Savers Value Village	0	3	3	1	2.71

Hanesbrands currently has a consensus target price of $6.50, indicating a potential upside of 3.09%. Savers Value Village has a consensus target price of $12.20, indicating a potential upside of 0.44%. Given Hanesbrands’ higher possible upside, equities analysts clearly believe Hanesbrands is more favorable than Savers Value Village.

Institutional and Insider Ownership

80.3% of Hanesbrands shares are owned by institutional investors. Comparatively, 98.8% of Savers Value Village shares are owned by institutional investors. 0.7% of Hanesbrands shares are owned by company insiders. Comparatively, 3.1% of Savers Value Village shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Hanesbrands has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Savers Value Village has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Earnings and Valuation

This table compares Hanesbrands and Savers Value Village”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hanesbrands	$3.51 billion	0.64	-$320.43 million	$0.24	26.27
Savers Value Village	$1.54 billion	1.23	$29.03 million	$0.21	57.84

Savers Value Village has lower revenue, but higher earnings than Hanesbrands. Hanesbrands is trading at a lower price-to-earnings ratio than Savers Value Village, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hanesbrands and Savers Value Village’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hanesbrands	2.49%	226.31%	5.19%
Savers Value Village	2.14%	8.85%	1.98%

Summary

Savers Value Village beats Hanesbrands on 8 of the 15 factors compared between the two stocks.

About Hanesbrands

Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells a range of range of innerwear apparels for men, women, and children in the Americas, Europe, the Asia pacific, and internationally. The company operates through three segments: Innerwear, Activewear, and International. It sells men’s underwear, women’s panties, children’s underwear, and socks, as well as intimate apparel comprising bras and shapewear; home goods; activewear apparel comprising T-shirts, fleece, performance apparel, sport shirts, performance T-shirts and shorts, sports bras, teamwear, and thermals; and licensed logo apparel in collegiate bookstores and mass retail channels. The company licenses its Champion name for footwear and sports accessories. It offers its products under the Hanes, Champion, Maidenform, JMS/Just My Size, Bali, Polo Ralph Lauren, Playtex, Alternative, Gear for Sports, Comfortwash, Hanes Beefy-T, Bonds, Sheridan, Bras N Things, Wonderbra, Berlei, Zorba, Sol y Oro, Maidenform, Rinbros, Bellinda, and RITMO brand names through retailers, wholesalers, and third-party embellishers. Hanesbrands Inc. was founded in 1901 and is headquartered in Winston-Salem, North Carolina.

About Savers Value Village

Savers Value Village, Inc. sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Value Village Boutique, Village des Valeurs, Unique, and 2nd Avenue brands. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners and then processes, selects, prices, merchandises, and sells them in its stores. It serves retail and wholesale customers. The company was formerly known as S-Evergreen Holding LLC and changed its name to Savers Value Village, Inc. in January 2022. Savers Value Village, Inc. was founded in 1954 and is based in Bellevue, Washington.