Contrasting Levi Strauss & Co. (NYSE:LEVI) and Industria de Diseno Textil (OTCMKTS:IDEXY)

Levi Strauss & Co. (NYSE:LEVI) and Industria de Diseno Textil (OTCMKTS:IDEXY) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Profitability

This table compares Levi Strauss & Co. and Industria de Diseno Textil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Levi Strauss & Co.	9.20%	25.08%	8.19%
Industria de Diseno Textil	15.40%	32.94%	17.22%

Valuation and Earnings

This table compares Levi Strauss & Co. 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
Levi Strauss & Co.	$6.28 billion	1.39	$578.10 million	$1.46	15.36
Industria de Diseno Textil	$41.81 billion	5.05	$6.32 billion	$0.55	30.82

Industria de Diseno Textil has higher revenue and earnings than Levi Strauss & Co.. Levi Strauss & Co. 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.

Risk and Volatility

Levi Strauss & Co. has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Industria de Diseno Textil has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Levi Strauss & Co. and Industria de Diseno Textil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Levi Strauss & Co.	0	3	12	0	2.80
Industria de Diseno Textil	0	0	1	5	3.83

Levi Strauss & Co. currently has a consensus price target of $26.69, indicating a potential upside of 19.05%. Given Levi Strauss & Co.’s higher possible upside, equities research analysts plainly believe Levi Strauss & Co. is more favorable than Industria de Diseno Textil.

Dividends

Levi Strauss & Co. pays an annual dividend of $0.56 per share and has a dividend yield of 2.5%. Industria de Diseno Textil pays an annual dividend of $0.29 per share and has a dividend yield of 1.7%. Levi Strauss & Co. pays out 38.4% of its earnings in the form of a dividend. Industria de Diseno Textil pays out 52.7% 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. Levi Strauss & Co. has increased its dividend for 4 consecutive years. Levi Strauss & Co. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

69.1% of Levi Strauss & Co. shares are owned by institutional investors. 1.3% of Levi Strauss & Co. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

About Levi Strauss & Co.

Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.

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.