Head to Head Comparison: Adidas (OTCMKTS:ADDYY) & Xtep International (OTCMKTS:XTEPY)

Adidas (OTCMKTS:ADDYY) and Xtep International (OTCMKTS:XTEPY) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Risk & Volatility

Adidas has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Xtep International has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Valuation & Earnings

This table compares Adidas and Xtep International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adidas	$28.06 billion	1.01	$1.52 billion	$4.21	18.82
Xtep International	$1.97 billion	0.83	$190.81 million	N/A	N/A

Adidas has higher revenue and earnings than Xtep International.

Dividends

Adidas pays an annual dividend of $0.76 per share and has a dividend yield of 1.0%. Xtep International pays an annual dividend of $4.48 per share and has a dividend yield of 7.7%. Adidas pays out 18.1% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Adidas and Xtep International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adidas	2	3	6	2	2.62
Xtep International	0	1	0	0	2.00

Adidas currently has a consensus price target of $146.02, suggesting a potential upside of 84.30%. Given Adidas’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Adidas is more favorable than Xtep International.

Profitability

This table compares Adidas and Xtep International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adidas	5.36%	22.58%	6.70%
Xtep International	N/A	N/A	N/A

Summary

Adidas beats Xtep International on 11 of the 13 factors compared between the two stocks.

About Adidas

adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products in Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific, and Latin America. It offers footwear, apparel, and accessories and gear, such as bags and balls under the adidas brand; golf footwear and apparel under the adidas Golf brand; and outdoor footwear under the Five Ten brand. It sells its products through its own retail stores; mono-branded franchise stores and shop-in-shops; and wholesale and its e-commerce channels. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany.

About Xtep International

Xtep International Holdings Limited engages in the design, development, manufacture, sale, and marketing and brand management of sports footwear, apparel, and accessories. The company sells its products primarily under the XTEP brand, as well as Palladium, K-Swiss, Saucony, and Merrell brand names. It is also involved in the trading of sportswear products. As of March 18, 2021, the company managed an extensive distribution network with exclusive distributors that operated approximately 6,000 stores covering 31 provinces, autonomous regions, and municipalities in the People's Republic of China and internationally. It also offers its products online. The company was founded in 1999 and is headquartered in Xiamen, the People's Republic of China. Xtep International Holdings Limited is a subsidiary of Group Success Investments Limited.