Industria de Diseño Textil (OTCMKTS:IDEXY) vs. Fast Retailing (OTCMKTS:FRCOY) Financial Contrast

Industria de Diseño Textil (OTCMKTS:IDEXY) and Fast Retailing (OTCMKTS:FRCOY) are both consumer cyclical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Profitability

This table compares Industria de Diseño Textil and Fast Retailing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Industria de Diseño Textil	15.09%	31.68%	16.27%
Fast Retailing	N/A	N/A	N/A

Institutional and Insider Ownership

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

Valuation and Earnings

This table compares Industria de Diseño Textil and Fast Retailing’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Industria de Diseño Textil	$38.90 billion	4.39	$5.82 billion	$0.96	28.56
Fast Retailing	N/A	N/A	N/A	$99.47	0.32

Industria de Diseño Textil has higher revenue and earnings than Fast Retailing. Fast Retailing is trading at a lower price-to-earnings ratio than Industria de Diseño Textil, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Industria de Diseño Textil and Fast Retailing, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industria de Diseño Textil	0	1	1	0	2.50
Fast Retailing	0	0	0	0	N/A

Dividends

Industria de Diseño Textil pays an annual dividend of $0.59 per share and has a dividend yield of 2.2%. Fast Retailing pays an annual dividend of $0.15 per share and has a dividend yield of 0.5%. Industria de Diseño Textil pays out 61.5% of its earnings in the form of a dividend. Fast Retailing pays out 0.2% 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.

Summary

Industria de Diseño Textil beats Fast Retailing on 7 of the 10 factors compared between the two stocks.

About Industria de Diseño Textil

Industria de Diseño Textil, S.A. engages in the retail and online distribution of clothing, footwear, accessories, and household products. The company sells its products under the Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home brands. It is also involved in the textile manufacturing, logistics, design, insurance, construction, and real estate businesses, as well as provides financial services. The company operates in Spain, rest of Europe, the Americas, Asia, and internationally. Industria de Diseño Textil, S.A. was founded in 1963 and is headquartered in A Coruña, Spain.

About Fast Retailing

Fast Retailing Co., Ltd., through its subsidiaries, operates as an apparel designer and retailer in Japan and internationally. The company operates through UNIQLO Japan, UNIQLO International, GU, and Global Brands segments. It manufactures and retails clothing for men, women, children, and babies, as well as offers shoes and other goods and items. The company operates stores and franchises under the UNIQLO, GU, PLST, Theory, COMPTOIR DES COTONNIERS, J Brand, and PRINCESSE TAM.TAM brand names. It also sells its products through online; and provides real estate leasing services. The company was formerly known as Ogori Shoji Co., Ltd. and changed its name to Fast Retailing Co., Ltd. in September 1991. Fast Retailing Co., Ltd. was founded in 1949 and is headquartered in Yamaguchi, Japan.