Xtep International (OTCMKTS:XTEPY) & Adidas (OTCMKTS:ADDYY) Head to Head Comparison
by Mitch Edgeman · The Markets DailyAdidas (OTCMKTS:ADDYY – Get Free Report) and Xtep International (OTCMKTS:XTEPY – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.
Earnings and Valuation
This table compares Adidas and Xtep International”s gross revenue, earnings per share 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.
Volatility & Risk
Adidas has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Xtep International has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for Adidas and Xtep International, as reported by MarketBeat.com.
| 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 target price of $146.02, suggesting a potential upside of 84.30%. Given Adidas’ stronger consensus rating and higher probable upside, 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 |
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.
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.