NIKE (NYSE:NKE – Get Free Report) and Jerash Holdings (US) (NASDAQ:JRSH – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.
Dividends
NIKE pays an annual dividend of $1.64 per share and has a dividend yield of 4.0%. Jerash Holdings (US) pays an annual dividend of $0.20 per share and has a dividend yield of 3.8%. NIKE pays out 78.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Jerash Holdings (US) pays out 52.6% of its earnings in the form of a dividend. NIKE has increased its dividend for 22 consecutive years. NIKE is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
NIKE has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Jerash Holdings (US) has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| NIKE | 6.70% | 16.54% | 6.21% |
| Jerash Holdings (US) | 2.77% | 7.61% | 5.69% |
Valuation and Earnings
This table compares NIKE and Jerash Holdings (US)”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NIKE | $46.40 billion | 1.30 | $3.11 billion | $2.09 | 19.49 |
| Jerash Holdings (US) | $176.86 million | 0.38 | $3.54 million | $0.38 | 13.95 |
NIKE has higher revenue and earnings than Jerash Holdings (US). Jerash Holdings (US) is trading at a lower price-to-earnings ratio than NIKE, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for NIKE and Jerash Holdings (US), as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NIKE | 5 | 18 | 13 | 1 | 2.27 |
| Jerash Holdings (US) | 0 | 0 | 2 | 0 | 3.00 |
NIKE currently has a consensus price target of $53.53, indicating a potential upside of 31.43%. Jerash Holdings (US) has a consensus price target of $6.00, indicating a potential upside of 13.21%. Given NIKE’s higher possible upside, research analysts plainly believe NIKE is more favorable than Jerash Holdings (US).
Institutional & Insider Ownership
64.2% of NIKE shares are owned by institutional investors. Comparatively, 3.4% of Jerash Holdings (US) shares are owned by institutional investors. 1.1% of NIKE shares are owned by company insiders. Comparatively, 41.0% of Jerash Holdings (US) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
NIKE beats Jerash Holdings (US) on 15 of the 18 factors compared between the two stocks.
About NIKE
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also sells a line of performance equipment and accessories comprising bags, sport balls, socks, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. In addition, the company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel; and licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.
About Jerash Holdings (US)
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Jerash Holdings (US), Inc., through its subsidiaries, manufactures and exports customized and ready-made sport and outerwear. The company offers t-shirts; jackets and pullover; pants and shorts; crew neck, polo shirts, and tank tops made from knitted fabric, as well as personal protective equipment. It serves various brand-name retailers in the United States, Hong Kong, Jordan, and internationally. The company was incorporated in 2016 and is headquartered in Fairfield, New Jersey.
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