Head-To-Head Review: Hugo Boss (OTCMKTS:BOSSY) & Wacoal (OTCMKTS:WACLY)
by Mitch Edgeman · The Markets DailyHugo Boss (OTCMKTS:BOSSY – Get Free Report) and Wacoal (OTCMKTS:WACLY – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.
Profitability
This table compares Hugo Boss and Wacoal’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hugo Boss | 5.92% | 17.88% | 7.09% |
| Wacoal | 7.11% | 5.98% | 4.31% |
Dividends
Hugo Boss pays an annual dividend of $0.21 per share and has a dividend yield of 2.4%. Wacoal pays an annual dividend of $2.52 per share and has a dividend yield of 1.9%. Hugo Boss pays out 25.3% of its earnings in the form of a dividend. Wacoal pays out 30.8% 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. Hugo Boss is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Hugo Boss and Wacoal, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hugo Boss | 0 | 2 | 0 | 0 | 2.00 |
| Wacoal | 0 | 0 | 0 | 0 | 0.00 |
Volatility and Risk
Hugo Boss has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Wacoal has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500.
Earnings & Valuation
This table compares Hugo Boss and Wacoal”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hugo Boss | $4.83 billion | 0.63 | $281.65 million | $0.83 | 10.69 |
| Wacoal | $1.14 billion | 1.23 | $46.13 million | $8.17 | 16.44 |
Hugo Boss has higher revenue and earnings than Wacoal. Hugo Boss is trading at a lower price-to-earnings ratio than Wacoal, indicating that it is currently the more affordable of the two stocks.
Summary
Hugo Boss beats Wacoal on 8 of the 12 factors compared between the two stocks.
About Hugo Boss
Hugo Boss AG, together with its subsidiaries, provides apparels, shoes, and accessories for men and women worldwide. It also offers licensed products comprising of fragrances, eyewear, watches, children’s fashion, equestrian, and cycling. The company markets and sells its products under the BOSS and HUGO brand names through freestanding stores, shop-in-shops, factory outlets, multi-brand stores, and franchise business, as well as online retailers, distribution, and stores. Hugo Boss AG was founded in 1924 and is headquartered in Metzingen, Germany.
About Wacoal
Wacoal Holdings Corp. engages in the manufacturing, wholesale, and retail sale of intimate apparel, outerwear, sportswear, and other textile products and accessories in Japan, Asia, Oceania, the United States, and Europe. The company operates through Wacoal Business (Domestic), Wacoal Business (Overseas), Peach John Business, and Other Businesses segments. It offers intimate apparel mainly women’s foundation wear, lingerie, nightwear and children’s underwear; and outerwear, sportswear, and other textile products and accessories. The company also engages in the restaurant, cultural and service-related businesses; and manufacture and sale of mannequins and fixtures, interior design work, and other textile-related businesses. It offers products through department stores, general merchandisers, and other general retailers in Japan, as well as directly managed retail stores, E-commerce websites, and distributors in Japan and internationally. Wacoal Holdings Corp. was founded in 1946 and is headquartered in Kyoto, Japan.