Critical Analysis: Perfect Moment (NASDAQ:PMNT) vs. Gildan Activewear (NYSE:GIL)

Gildan Activewear (NYSE:GIL) and Perfect Moment (NASDAQ:PMNT) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Profitability

This table compares Gildan Activewear and Perfect Moment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gildan Activewear	12.26%	28.80%	13.17%
Perfect Moment	-67.38%	-513.83%	-119.38%

Institutional and Insider Ownership

82.8% of Gildan Activewear shares are owned by institutional investors. Comparatively, 23.0% of Perfect Moment shares are owned by institutional investors. 2.0% of Gildan Activewear shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Gildan Activewear and Perfect Moment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gildan Activewear	$3.27 billion	2.08	$533.58 million	$2.50	17.90
Perfect Moment	$21.31 million	0.90	-$8.72 million	($1.30)	-0.89

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Gildan Activewear and Perfect Moment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gildan Activewear	0	0	9	0	3.00
Perfect Moment	0	0	1	0	3.00

Gildan Activewear presently has a consensus price target of $60.00, suggesting a potential upside of 34.05%. Perfect Moment has a consensus price target of $6.00, suggesting a potential upside of 417.20%. Given Perfect Moment’s higher probable upside, analysts clearly believe Perfect Moment is more favorable than Gildan Activewear.

Summary

Gildan Activewear beats Perfect Moment on 11 of the 12 factors compared between the two stocks.

About Gildan Activewear

Gildan Activewear Inc. manufactures and sells various apparel products in the United States, North America, Europe, Asia-Pacific, and Latin America. It provides various activewear products, including T-shirts, fleece tops and bottoms, and sports shirts under the Gildan, Gildan Performance, Gildan Hammer, Glidan Softstyle, Gildan Heavy Cotton, Gildan Ultra Cotton, Gildan DryBlend, Gildan HeavyBlend, Comfort Colors, and American Apparel brands. The company also offers hosiery products comprising athletic; dress; and casual, liner, therapeutic, and workwear socks under the Gildan, Under Armour, GoldToe, Signature Gold by Goldtoe, Peds, MediPeds, All Pro, and GoldTeo Edition TM brands. In addition, it provides men's and boys' underwear products, and ladies panties under the Gildan and Gildan Platinum brands. The company sells its products to wholesale distributors, screen printers, and embellishers, as well as to retailers and lifestyle brand companies. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was founded in 1946 and is headquartered in Montreal, Canada.

About Perfect Moment

Perfect Moment Ltd., together with its subsidiaries, owns and operates a fashion brand that offers ski, surf, and activewear collections under the brand name of Perfect Moment. It offers skiwear, outerwear, swimwear and activewear for women, men, and children. The company sells its collections directly to customers through e-commerce and to wholesale accounts, as well as through other sales partnerships. Perfect Moment Ltd. was founded in 1984 and is based in London, the United Kingdom.