Adidas (OTCMKTS:ADDYY – Get Free Report) and Birkenstock (NYSE:BIRK – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Adidas and Birkenstock, as provided by MarketBeat.
| 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 |
Birkenstock has a consensus price target of $68.38, indicating a potential upside of 62.64%. Given Birkenstock’s higher probable upside, analysts clearly believe Birkenstock is more favorable than Adidas.
Volatility & Risk
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% | 20.66% | 5.96% |
| Birkenstock | 15.21% | 11.52% | 6.27% |
Valuation & Earnings
This table compares Adidas and Birkenstock”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Adidas | $25.63 billion | 1.52 | $826.72 million | $3.67 | 29.75 |
| Birkenstock | $1.96 billion | 4.03 | $207.85 million | $1.80 | 23.36 |
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.
Insider & Institutional Ownership
19.9% of Birkenstock shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
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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