Head-To-Head Contrast: Industria de Diseno Textil (OTCMKTS:IDEXY) versus Hennes & Mauritz (OTCMKTS:HNNMY)

Hennes & Mauritz (OTCMKTS:HNNMY) and Industria de Diseno Textil (OTCMKTS:IDEXY) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Volatility & Risk

Hennes & Mauritz has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Industria de Diseno Textil has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares Hennes & Mauritz and Industria de Diseno Textil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hennes & Mauritz	4.80%	26.34%	6.32%
Industria de Diseno Textil	15.15%	32.32%	16.84%

Analyst Recommendations

This is a summary of current recommendations and price targets for Hennes & Mauritz and Industria de Diseno Textil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hennes & Mauritz	1	4	0	1	2.17
Industria de Diseno Textil	0	0	1	4	3.80

Valuation & Earnings

This table compares Hennes & Mauritz and Industria de Diseno Textil”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hennes & Mauritz	$22.18 billion	1.18	$1.11 billion	$0.14	26.57
Industria de Diseno Textil	$41.81 billion	4.23	$6.32 billion	$0.52	27.27

Industria de Diseno Textil has higher revenue and earnings than Hennes & Mauritz. Hennes & Mauritz is trading at a lower price-to-earnings ratio than Industria de Diseno Textil, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

0.0% of Hennes & Mauritz shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Hennes & Mauritz pays an annual dividend of $0.08 per share and has a dividend yield of 2.2%. Industria de Diseno Textil pays an annual dividend of $0.29 per share and has a dividend yield of 2.0%. Hennes & Mauritz pays out 57.1% of its earnings in the form of a dividend. Industria de Diseno Textil pays out 55.8% 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.

Summary

Industria de Diseno Textil beats Hennes & Mauritz on 12 of the 15 factors compared between the two stocks.

About Hennes & Mauritz

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.

About Industria de Diseno Textil

Industria de Diseño Textil, S.A. engages in the retail and online distribution of clothing, footwear, accessories, and household products. The company sells its products under the Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home brands. It is also involved in the textile manufacturing, logistics, design, insurance, construction, and real estate businesses, as well as provides financial services. The company operates in Spain, rest of Europe, the Americas, Asia, and internationally. Industria de Diseño Textil, S.A. was founded in 1963 and is headquartered in A Coruña, Spain.