Hanesbrands (NYSE:HBI) vs. Delta Apparel (NYSE:DLA) Head-To-Head Comparison

Delta Apparel (NYSE:DLA) and Hanesbrands (NYSE:HBI) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Earnings and Valuation

This table compares Delta Apparel and Hanesbrands’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Delta Apparel	$415.35 million	0.04	-$33.21 million	($5.46)	-0.48
Hanesbrands	$5.64 billion	0.28	-$17.73 million	($0.05)	-88.80

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

Risk & Volatility

Delta Apparel has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Hanesbrands has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500.

Profitability

This table compares Delta Apparel and Hanesbrands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Delta Apparel	-9.84%	-10.64%	-3.62%
Hanesbrands	-0.31%	5.84%	0.33%

Analyst Recommendations

This is a summary of current recommendations and price targets for Delta Apparel and Hanesbrands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Delta Apparel	0	0	0	0	N/A
Hanesbrands	0	3	0	0	2.00

Hanesbrands has a consensus target price of $5.00, indicating a potential upside of 12.61%. Given Hanesbrands’ higher probable upside, analysts plainly believe Hanesbrands is more favorable than Delta Apparel.

Insider & Institutional Ownership

74.0% of Delta Apparel shares are owned by institutional investors. Comparatively, 80.3% of Hanesbrands shares are owned by institutional investors. 10.3% of Delta Apparel shares are owned by company insiders. Comparatively, 0.5% of Hanesbrands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Hanesbrands beats Delta Apparel on 10 of the 12 factors compared between the two stocks.

About Delta Apparel

Delta Apparel, Inc., through its subsidiaries, designs, manufactures, sources, and markets activewear and lifestyle apparel products in the United States, Honduras, El Salvador, Mexico, and internationally. The company operates through two segments, Delta Group and Salt Life Group. It offers on-demand digitally printed apparel products under the DTG2Go brand; silhouettes and fleece products; performance shirts that keep athletes dry under the Delta Dri line brand; ringspun garments; Delta Soft apparel products; and heritage, mid- and heavier-weight tee shirts under the Delta Pro Weight and Magnum Weight brand names, as well as polos, outerwear, headwear, bags, and other accessories under the Soffe brand. The company also distributes its products to various audience, which includes sporting goods and outdoor retailers, specialty and resort shops, farm and fleet stores, department stores, and mid-tier retailers, as well as through soffe.com website. In addition, it offers apparel, swimwear, board shorts, sunglasses, bags, and accessories under the Salt Life brand through surf shops, specialty stores, department stores, and outdoor retailers, as well as through its saltlife.com ecommerce site. The company was found in 1903 and is headquartered in Duluth, Georgia.

About Hanesbrands

Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells a range of range of innerwear apparels for men, women, and children in the Americas, Europe, the Asia pacific, and internationally. The company operates through three segments: Innerwear, Activewear, and International. It sells men's underwear, women's panties, children's underwear, and socks, as well as intimate apparel comprising bras and shapewear; home goods; activewear apparel comprising T-shirts, fleece, performance apparel, sport shirts, performance T-shirts and shorts, sports bras, teamwear, and thermals; and licensed logo apparel in collegiate bookstores and mass retail channels. The company licenses its Champion name for footwear and sports accessories. It offers its products under the Hanes, Champion, Maidenform, JMS/Just My Size, Bali, Polo Ralph Lauren, Playtex, Alternative, Gear for Sports, Comfortwash, Hanes Beefy-T, Bonds, Sheridan, Bras N Things, Wonderbra, Berlei, Zorba, Sol y Oro, Maidenform, Rinbros, Bellinda, and RITMO brand names through retailers, wholesalers, and third-party embellishers. Hanesbrands Inc. was founded in 1901 and is headquartered in Winston-Salem, North Carolina.