WallStSmart

Gildan Activewear Inc. (GIL)vsKontoor Brands Inc (KTB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Gildan Activewear Inc. generates 38% more annual revenue ($4.74B vs $3.43B). KTB leads profitability with a 7.8% profit margin vs 1.3%. KTB trades at a lower P/E of 13.4x. GIL earns a higher WallStSmart Score of 63/100 (C+).

GIL

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 5.3Quality: 4.5
Piotroski: 2/9Altman Z: 1.29

KTB

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 7.5Value: 5.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.23
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GILSignificantly Overvalued (-26.5%)

Margin of Safety

-26.5%

Fair Value

$57.25

Current Price

$47.01

$10.24 premium

UndervaluedFair: $57.25Overvalued
KTBSignificantly Overvalued (-30.9%)

Margin of Safety

-30.9%

Fair Value

$51.47

Current Price

$67.82

$16.35 premium

UndervaluedFair: $51.47Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GIL4 strengths · Avg: 9.0/10
PEG RatioValuation
0.3910/10

Growing faster than its price suggests

Revenue GrowthGrowth
72.3%10/10

Revenue surging 72.3% year-over-year

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.3%8/10

Strong operational efficiency at 22.3%

KTB3 strengths · Avg: 8.7/10
Return on EquityProfitability
44.8%10/10

Every $100 of equity generates 45 in profit

P/E RatioValuation
13.4x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
18.6%8/10

18.6% revenue growth

Areas to Watch

GIL4 concerns · Avg: 3.3/10
P/E RatioValuation
35.8x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
7.3%3/10

ROE of 7.3% — below average capital efficiency

Profit MarginProfitability
1.3%3/10

1.3% margin — thin

Debt/EquityHealth
1.453/10

Elevated debt levels

KTB4 concerns · Avg: 2.3/10
Profit MarginProfitability
7.8%3/10

7.8% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-11.4%2/10

Earnings declined 11.4%

Debt/EquityHealth
2.061/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : GIL

The strongest argument for GIL centers on PEG Ratio, Revenue Growth, Price/Book. Revenue growth of 72.3% demonstrates continued momentum. PEG of 0.39 suggests the stock is reasonably priced for its growth.

Bull Case : KTB

The strongest argument for KTB centers on Return on Equity, P/E Ratio, Revenue Growth. Revenue growth of 18.6% demonstrates continued momentum.

Bear Case : GIL

The primary concerns for GIL are P/E Ratio, Return on Equity, Profit Margin. Thin 1.3% margins leave little buffer for downturns.

Bear Case : KTB

The primary concerns for KTB are Profit Margin, Piotroski F-Score, EPS Growth. Debt-to-equity of 2.06 is elevated, increasing financial risk.

Key Dynamics to Monitor

GIL profiles as a hypergrowth stock while KTB is a growth play — different risk/reward profiles.

GIL carries more volatility with a beta of 1.08 — expect wider price swings.

GIL is growing revenue faster at 72.3% — sustainability is the question.

GIL generates stronger free cash flow (317M), providing more financial flexibility.

Bottom Line

GIL scores higher overall (63/100 vs 51/100) and 72.3% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Gildan Activewear Inc.

CONSUMER CYCLICAL · APPAREL MANUFACTURING · USA

Gildan Activewear Inc. manufactures and sells various apparel products in the United States, Canada, and internationally. The company is headquartered in Montreal, Canada.

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Kontoor Brands Inc

CONSUMER CYCLICAL · APPAREL MANUFACTURING · USA

Kontoor Brands, Inc., a lifestyle apparel company, designs, manufactures, acquires, markets and distributes apparel under the Wrangler and Lee brands in the United States and internationally. The company is headquartered in Greensboro, North Carolina.

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