Head to Head Analysis: Geox (OTCMKTS:GXSBF) and adidas (OTCMKTS:ADDYY)

adidas (OTCMKTS:ADDYY) and Geox (OTCMKTS:GXSBF) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Profitability

This table compares adidas and Geox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
adidas	-0.53%	-6.28%	-1.74%
Geox	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings for adidas and Geox, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
adidas	2	10	11	0	2.39
Geox	0	0	0	0	N/A

adidas currently has a consensus target price of $147.50, indicating a potential upside of 56.75%. Given adidas’ higher possible upside, equities research analysts clearly believe adidas is more favorable than Geox.

Valuation and Earnings

This table compares adidas and Geox’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
adidas	$23.72 billion	1.52	$644.80 million	($0.37)	-254.32
Geox	N/A	N/A	N/A	($0.06)	-13.67

adidas has higher revenue and earnings than Geox. adidas is trading at a lower price-to-earnings ratio than Geox, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

0.0% of adidas shares are held by institutional investors. Comparatively, 11.8% of Geox shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Geox beats adidas on 6 of the 9 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. It sells its products through 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 Geox

Geox S.p.A. creates, produces, promotes, and distributes footwear and apparel to retailers and end consumers in Italy, Europe, North America, and internationally. The company offers shoes and apparel under the Geox brand name through multi-brand selling points, mono-brand stores, Geox Shops, and e-commerce channels. The company is headquartered in Montebelluna, Italy. Geox S.p.A. is a subsidiary of LIR S.r.l.