V.F. (NYSE:VFC – Get Free Report) and Grasim Industries (OTCMKTS:GRSXY – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Institutional & Insider Ownership
86.8% of V.F. shares are owned by institutional investors. 1.1% of V.F. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
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Dividends
V.F. pays an annual dividend of $0.36 per share and has a dividend yield of 2.4%. Grasim Industries pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. V.F. pays out -276.9% of its earnings in the form of a dividend. Grasim Industries pays out 13.7% 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. V.F. is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares V.F. and Grasim Industries”s gross revenue, earnings per share (EPS) and valuation.
Grasim Industries has higher revenue and earnings than V.F.. V.F. is trading at a lower price-to-earnings ratio than Grasim Industries, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
V.F. has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Grasim Industries has a beta of -0.21, indicating that its share price is 121% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for V.F. and Grasim Industries, as provided by MarketBeat.com.
V.F. currently has a consensus price target of $16.67, suggesting a potential upside of 12.13%. Given V.F.’s stronger consensus rating and higher possible upside, equities research analysts plainly believe V.F. is more favorable than Grasim Industries.
Profitability
This table compares V.F. and Grasim Industries’ net margins, return on equity and return on assets.
Summary
V.F. beats Grasim Industries on 11 of the 17 factors compared between the two stocks.
About V.F.
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VF Corp. engages in the business of producing and marketing apparel, footwear, and accessories. It operates through the following segments: Outdoor, Active, Work, and Other. The Outdoor segment includes authentic outdoor-based lifestyle brands such as performance-based and outdoor apparel, footwear, and equipment. The Active segment focuses on activity-based lifestyle brands including active apparel, footwear, backpacks, luggage, and accessories. The Work segment offers work and work-inspired lifestyle brands with product offerings including apparel, footwear, and accessories. The Other segment refers to the sale of non-VF products and sourcing activities related to transition services. The company was founded by John Barbey in October 1899 and is headquartered in Denver, CO.
About Grasim Industries
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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.