Analyzing ASICS (OTCMKTS:ASCCF) & adidas (OTCMKTS:ADDYY)

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

Valuation & Earnings

This table compares ASICS and adidas”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ASICS	N/A	N/A	N/A	$172.46	0.11
adidas	$23.19 billion	2.01	-$81.17 million	$0.42	289.83

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

Institutional and Insider Ownership

22.2% of ASICS shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ASICS	N/A	N/A	N/A
adidas	1.10%	3.75%	1.07%

Dividends

ASICS pays an annual dividend of $13.55 per share and has a dividend yield of 73.2%. adidas pays an annual dividend of $0.23 per share and has a dividend yield of 0.2%. ASICS pays out 7.9% of its earnings in the form of a dividend. adidas pays out 54.8% 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. ASICS is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and price targets for ASICS and adidas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ASICS	0	0	0	0	N/A
adidas	0	1	4	0	2.80

Summary

adidas beats ASICS on 6 of the 10 factors compared between the two stocks.

About ASICS

ASICS Corporation manufactures and sells sporting goods in Japan, North America, Europe, China, Oceania, Southeast and South Asia, and internationally. It offers running shoes, apparel, and sports accessories and equipment. The company sells its products under the ASICS, ASICSTIGER, and Onitsuka Tiger brands through retail stores, as well as online. ASICS Corporation was incorporated in 1943 and is headquartered in Kobe, Japan.

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.