Reviewing Guess? (NYSE:GES) and JD Sports Fashion (OTCMKTS:JDDSF)

JD Sports Fashion (OTCMKTS:JDDSF) and Guess? (NYSE:GES) are both consumer cyclical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares JD Sports Fashion and Guess?”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JD Sports Fashion	N/A	N/A	N/A	N/A	N/A
Guess?	$2.87 billion	0.36	$198.20 million	$3.35	5.81

Guess? has higher revenue and earnings than JD Sports Fashion.

Analyst Recommendations

This is a breakdown of current recommendations for JD Sports Fashion and Guess?, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JD Sports Fashion	1	0	0	0	1.00
Guess?	0	3	1	0	2.25

Guess? has a consensus target price of $27.25, indicating a potential upside of 39.89%. Given Guess?’s stronger consensus rating and higher possible upside, analysts clearly believe Guess? is more favorable than JD Sports Fashion.

Insider and Institutional Ownership

61.7% of Guess? shares are owned by institutional investors. 30.3% of Guess? shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares JD Sports Fashion and Guess?’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JD Sports Fashion	N/A	N/A	N/A
Guess?	6.05%	24.18%	5.55%

Summary

Guess? beats JD Sports Fashion on 9 of the 9 factors compared between the two stocks.

About JD Sports Fashion

JD Sports Fashion plc engages in the retail of branded sports fashion and outdoor clothing, footwear, accessories, and equipment for kids, women, and men. It operates through Sports Fashion and Outdoor segments. The company also retails leisure goods, sports goods, fishing gear, camping goods, boats, and bicycles, as well as distributes sports apparel and accessories, footwear, and apparel. It offers its products under the JD, Size?, Footpatrol, Finish Line, Shoe Palace, DTLR, Livestock, Sprinter, Sport Zone, Sizeer, JD Gyms, Tessuti, Scotts, Go Outdoors, Blacks, Millets, Tiso, Ultimate Outdoors, Fishing Republic, and Naylors brands. The company also operates online business. In addition, it licenses fashion brands and operates fitness centers; operates as online own label women's fashion retailer; and manufactures and distributes professional fitness equipment. The company has operations in the United Kingdom, Andorra, Australia, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Israel, Italy, Latvia, Lithuania, Malaysia, the Netherlands, New Zealand, Poland, Portugal, Republic of Ireland, Romania, Serbia, Singapore, Slovakia, South Korea, Spain and the Canary Islands, Sweden, Thailand, and the United Arab Emirates. The company was founded in 1981 and is headquartered in Bury, the United Kingdom. JD Sports Fashion plc is a subsidiary of Pentland Group Limited.

About Guess?

Guess?, Inc. designs, markets, distributes, and licenses lifestyle collections of apparel and accessories for men, women, and children. It operates through five segments: Americas Retail, Americas Wholesale, Europe, Asia, and Licensing. The company’s clothing collection includes jeans, pants, skirts, dresses, shorts, blouses, shirts, jackets, activewear, knitwear, and intimate apparel. It also grants licenses to design, manufacture, and distribute various products that complement its apparel lines, such as eyewear, watches, handbags, footwear, kids’ and infants’ apparel, outerwear, fragrance, jewelry, and other fashion accessories, as well as to wholesale partners to operate and sell products through licensed retail stores. The company markets its products under the GUESS, GUESS?, GUESS U.S.A., GUESS Jeans, GUESS? and Triangle Design, MARCIANO, Question Mark and Triangle Design, a stylized G and a stylized M, GUESS Kids, Baby GUESS, YES, G by GUESS, GUESS by MARCIANO, and Gc brand names. It sells its products through direct-to-consumer, wholesale, and licensing distribution channels, as well as through its retail websites. Guess?, Inc. was founded in 1981 and is headquartered in Los Angeles, California.