Contrasting Perfect Moment (NASDAQ:PMNT) and 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 compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gildan Activewear	$3.27 billion	2.09	$533.58 million	$2.50	17.95
Perfect Moment	$21.31 million	0.98	-$8.72 million	($1.30)	-0.97

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.

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

Analyst Ratings

This is a summary of recent ratings for Gildan Activewear and Perfect Moment, as reported by MarketBeat.com.

	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 currently has a consensus target price of $60.00, suggesting a potential upside of 33.73%. Perfect Moment has a consensus target price of $6.00, suggesting a potential upside of 376.19%. Given Perfect Moment’s higher possible 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.