Critical Review: Teijin (OTCMKTS:TINLY) versus PVH (NYSE:PVH)

PVH (NYSE:PVH) and Teijin (OTCMKTS:TINLY) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for PVH and Teijin, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PVH	0	8	10	0	2.56
Teijin	0	0	0	0	0.00

PVH currently has a consensus target price of $95.13, suggesting a potential upside of 23.93%. Given PVH’s stronger consensus rating and higher possible upside, equities analysts clearly believe PVH is more favorable than Teijin.

Dividends

PVH pays an annual dividend of $0.15 per share and has a dividend yield of 0.2%. Teijin pays an annual dividend of $0.23 per share and has a dividend yield of 2.6%. PVH pays out 1.7% of its earnings in the form of a dividend. Teijin pays out 575.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

97.3% of PVH shares are owned by institutional investors. 1.2% of PVH 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.

Earnings & Valuation

This table compares PVH and Teijin”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PVH	$8.78 billion	0.42	$598.50 million	$8.92	8.61
Teijin	$6.60 billion	0.26	$187.09 million	$0.04	218.50

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

Risk & Volatility

PVH has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, Teijin has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.

Profitability

This table compares PVH and Teijin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PVH	5.34%	11.90%	5.32%
Teijin	N/A	N/A	N/A

Summary

PVH beats Teijin on 14 of the 16 factors compared between the two stocks.

About PVH

PVH Corp. operates as an apparel company in the United States and internationally. The company operates through Tommy Hilfiger North America, Tommy Hilfiger International, Calvin Klein North America, Calvin Klein International, and Heritage Brands Wholesale segments. It designs and markets men's, women's, and children's branded apparel, footwear and accessories, underwear, sleepwear, outerwear, home furnishings, luggage, dresses, suits and swimwear, activewear, sportswear, socks and accessories, outerwear, golf products, footwear, watches and jewelry, eyeglasses and non-ophthalmic sunglasses, jeans wear, performance apparel, intimate apparel, dress shirts, handbags, fragrance, small leather goods, and other related products; and men's and boy's tailored clothing products, duvets, pillows, mattress pads and toppers, and feather beds. The company offers its products under its own brands, such as TOMMY HILFIGER, TOMMY JEANS, Calvin Klein, CK Calvin Klein, Calvin Klein Jeans, Calvin Klein Underwear, and Calvin Klein Performance, as well as various other owned, licensed, and private label brands. It distributes its products at wholesale in department, chain, and specialty stores; through warehouse clubs, mass market, and off-price and independent retailers; and through company-operated full-price, outlet stores, and concession locations; and through digital commerce sites. PVH Corp. was founded in 1881 and is based in New York, New York.

About Teijin

Teijin Limited engages in the fibers, films and sheets, composites, healthcare, and IT businesses worldwide. It offers aramid fibers and polyethylene materials; carbon fibers, composite materials, and oxidized PAN fibers; polycarbonate sheets and films; high-density polyethylene porous films and materials; and microporous films. The company also provides PC resins, polyphenylene sulfide resins, molded parts, and additives; lightweight glass and carbon fiber reinforced composites for automotive applications; and polytrimethylene telephthalate products, artificial leather materials, polyester nanofibers, and recycled polyester fibers. In addition, it offers pharmaceuticals for bone and joint, respiratory, cardiovascular and metabolic, and other diseases; home oxygen therapy, non-invasive positive pressure ventilation, rehabilitation, and sleep disordered breathing related devices, as well as sonic accelerated fracture healing system and community-based integrated care system; and orthopedic implantable devices, and functional food ingredients. Further, the company provides Recopic, a radio-frequency identification technology for inventory management. Additionally, it develops and implements engineering solutions for various issues, such as environmental pollution, energy supply stability, and aging-related workforce population decline. Teijin Limited was incorporated in 1918 and is headquartered in Tokyo, Japan.