Grasim Industries (OTCMKTS:GRSXY) and Oxford Industries (NYSE:OXM) Critical Contrast

Grasim Industries (OTCMKTS:GRSXY) and Oxford Industries (NYSE:OXM) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.

Insider and Institutional Ownership

91.2% of Oxford Industries shares are held by institutional investors. 6.0% of Oxford Industries shares are held by company insiders. 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.

Valuation and Earnings

This table compares Grasim Industries and Oxford Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grasim Industries	$17.74 billion	0.75	$437.27 million	$0.73	26.71
Oxford Industries	$1.52 billion	0.40	$92.97 million	$3.70	10.98

Grasim Industries has higher revenue and earnings than Oxford Industries. Oxford Industries is trading at a lower price-to-earnings ratio than Grasim Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Grasim Industries and Oxford Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grasim Industries	2.71%	5.48%	1.75%
Oxford Industries	3.80%	10.99%	5.15%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Grasim Industries and Oxford Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grasim Industries	0	0	0	0	0.00
Oxford Industries	3	4	0	0	1.57

Oxford Industries has a consensus price target of $54.40, suggesting a potential upside of 33.95%. Given Oxford Industries’ stronger consensus rating and higher possible upside, analysts clearly believe Oxford Industries is more favorable than Grasim Industries.

Dividends

Grasim Industries pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. Oxford Industries pays an annual dividend of $2.76 per share and has a dividend yield of 6.8%. Grasim Industries pays out 13.7% of its earnings in the form of a dividend. Oxford Industries pays out 74.6% 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. Oxford Industries has increased its dividend for 5 consecutive years. Oxford Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Grasim Industries has a beta of -0.22, indicating that its share price is 122% less volatile than the S&P 500. Comparatively, Oxford Industries has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Summary

Oxford Industries beats Grasim Industries on 11 of the 16 factors compared between the two stocks.

About Grasim Industries

Grasim Industries Limited operates in fibre, yarn, pulp, chemicals, textile, fertilizers, and insulators businesses in India and internationally. The company operates through Viscose, Chemicals, Cement, Financial Services, and Others segments. It provides viscose staple fiber, a man-made biodegradable fiber for use in apparels, home textiles, dress materials, knit wear products, and non-woven applications; wood pulp products; viscose filament yarn, a natural fibre for manufacturing fabrics such as georgettes, crepes, chiffons, and others; and textile products, such as linen and wool. The company offers various chemical products, including chlor-alkali and epoxy resin products. In addition, it provides electrical insulators for transmission lines and substations, as well as equipment and railways. Further, the company offers grey cement; white cement; ready mix concrete; and cement-based putty. Additionally, it provides various financial services comprising non-bank financial, life insurance, asset management, housing finance, equity broking, wealth management, general insurance advisory, and health insurance services. The company involved in solar power designing, engineering procurement, and commissioning business. Grasim Industries Limited was incorporated in 1947 and is based in Mumbai, India.

About Oxford Industries

Oxford Industries, Inc., an apparel company, designs, sources, markets, and distributes products of lifestyle and other brands worldwide. The company offers men's and women's sportswear and related products under the Tommy Bahama brand; and women's and girl's dresses and sportswear, scarves, bags, jewelry, and belts, as well as children's apparel, swim, footwear, and licensed products under the Lilly Pulitzer brand. In addition, the company licenses Tommy Bahama brand for various products, such as indoor and outdoor furniture, beach chairs, bedding and bath linens, fabrics, leather goods and gifts, headwear, hosiery, sleepwear, shampoo, toiletries, fragrances, cigar accessories, distilled spirits, and other products; and Lilly Pulitzer for stationery and gift products, home furnishing products, and eyewear. The company distribute its products through southerntide.com, thebeaufortbonnetcompany.com, and duckhead.com; and specialty retailers. It offers products through its retail stores, department stores, specialty stores, multi-branded e-commerce retailers, off-price retailers, and other retailers, as well as e-commerce sites. The company operates brand-specific full-price retail stores; Tommy Bahama food and beverage locations; and Tommy Bahama outlet stores. Oxford Industries, Inc. was founded in 1942 and is headquartered in Atlanta, Georgia.