Comparing Columbia Sportswear (NASDAQ:COLM) & Capri (NYSE:CPRI)

Capri (NYSE:CPRI) and Columbia Sportswear (NASDAQ:COLM) are both mid-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for Capri and Columbia Sportswear, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capri	1	9	4	2	2.44
Columbia Sportswear	1	3	2	0	2.17

Capri presently has a consensus price target of $22.13, indicating a potential upside of 3.17%. Columbia Sportswear has a consensus price target of $66.40, indicating a potential downside of 9.62%. Given Capri’s stronger consensus rating and higher possible upside, equities analysts clearly believe Capri is more favorable than Columbia Sportswear.

Volatility and Risk

Capri has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Columbia Sportswear has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Insider & Institutional Ownership

84.3% of Capri shares are owned by institutional investors. Comparatively, 47.8% of Columbia Sportswear shares are owned by institutional investors. 2.6% of Capri shares are owned by insiders. Comparatively, 51.9% of Columbia Sportswear shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Capri and Columbia Sportswear”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capri	$3.47 billion	0.64	$137.00 million	$1.77	12.12
Columbia Sportswear	$3.40 billion	1.09	$177.22 million	$4.56	16.11

Columbia Sportswear has lower revenue, but higher earnings than Capri. Capri is trading at a lower price-to-earnings ratio than Columbia Sportswear, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Capri and Columbia Sportswear’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capri	6.12%	242.96%	7.54%
Columbia Sportswear	6.97%	11.71%	6.90%

Summary

Capri beats Columbia Sportswear on 9 of the 15 factors compared between the two stocks.

About Capri

Capri Holdings Limited is a global fashion group focused on designing, marketing and distributing luxury apparel, footwear, handbags, accessories and related products. Its portfolio includes Michael Kors and Jimmy Choo, whose products are sold through company-operated stores, e-commerce platforms and wholesale partners. The company serves customers in markets around the world, including North America, Europe and Asia. Its brands offer a range of products, including ready-to-wear clothing, shoes, bags, watches, eyewear, jewelry and fragrances.

About Columbia Sportswear

Columbia Sportswear Company designs, sources, markets and distributes outdoor and active-lifestyle apparel, footwear, accessories and equipment. Its products serve activities such as hiking, skiing, fishing and other outdoor pursuits, as well as everyday wear. The company’s portfolio includes the Columbia, SOREL, Mountain Hardwear and prAna brands. Its offerings range from jackets, shirts and pants to boots, shoes, backpacks and other outdoor accessories. Founded in 1938 as a hat distributor in Portland, Oregon, Columbia Sportswear has grown into a global business.