Critical Comparison: Gildan Activewear (NYSE:GIL) vs. Its Peers

Gildan Activewear (NYSE: GIL) is one of 26 public companies in the “Apparel & Accessories” industry, but how does it compare to its competitors? We will compare Gildan Activewear to similar companies based on the strength of its earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Volatility and Risk

Gildan Activewear has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Gildan Activewear’s competitors have a beta of 0.73, suggesting that their average share price is 27% less volatile than the S&P 500.

Valuation & Earnings

This table compares Gildan Activewear and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Gildan Activewear $2.68 billion $567.29 million 18.79
Gildan Activewear Competitors $2.68 billion $378.34 million -3.86

Gildan Activewear has higher revenue and earnings than its competitors. Gildan Activewear is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Gildan Activewear pays an annual dividend of $0.37 per share and has a dividend yield of 1.2%. Gildan Activewear pays out 22.4% of its earnings in the form of a dividend. As a group, “Apparel & Accessories” companies pay a dividend yield of 1.4% and pay out 40.9% of their earnings in the form of a dividend. Gildan Activewear has raised its dividend for 4 consecutive years.

Institutional & Insider Ownership

72.6% of Gildan Activewear shares are owned by institutional investors. Comparatively, 48.9% of shares of all “Apparel & Accessories” companies are owned by institutional investors. 28.7% of shares of all “Apparel & Accessories” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Gildan Activewear and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gildan Activewear 0 6 4 0 2.40
Gildan Activewear Competitors 242 1240 1889 72 2.52

Gildan Activewear currently has a consensus price target of $35.33, indicating a potential upside of 13.94%. As a group, “Apparel & Accessories” companies have a potential upside of 5.69%. Given Gildan Activewear’s higher possible upside, equities analysts plainly believe Gildan Activewear is more favorable than its competitors.

Profitability

This table compares Gildan Activewear and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gildan Activewear 14.16% 18.65% 12.68%
Gildan Activewear Competitors -1,512.44% -11.23% -7.75%

Summary

Gildan Activewear beats its competitors on 9 of the 15 factors compared.

Gildan Activewear Company Profile

Gildan Activewear Inc. is a manufacturer and marketer of branded basic family apparel, including T-shirts, fleece, sport shirts, underwear, socks, hosiery and shapewear. The Company operates through two segments: Printwear and Branded Apparel. The Printwear segment designs, manufactures, sources, markets, and distributes undecorated activewear products. The Branded Apparel segment designs, manufactures, sources, markets, and distributes branded family apparel, which includes athletic, casual and dress socks, underwear, activewear, sheer hosiery, legwear, and shapewear products, which are sold to retailers in the United States and Canada. The Company sells its products under various brands, including the Gildan, Gold Toe, Anvil, Comfort Colors, American Apparel, Alstyle, Secret, Silks, Kushyfoot, Secret Silky, Therapy Plus, Peds, and MediPeds brands. The Company distributes its products in printwear markets in the United States, Canada, Mexico, Europe, Asia-Pacific and Latin America.

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