WallStSmart

Hanesbrands Inc (HBI)vsKontoor Brands Inc (KTB)

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Smart Verdict

WallStSmart Research — data-driven comparison

Hanesbrands Inc generates 12% more annual revenue ($3.53B vs $3.15B). HBI leads profitability with a 9.3% profit margin vs 7.2%. HBI trades at a lower P/E of 5.5x. HBI earns a higher WallStSmart Score of 66/100 (B-).

HBI

Strong Buy

66

out of 100

Grade: B-

Growth: 4.7Profit: 7.0Value: 10.0Quality: 4.5
Piotroski: 4/9Altman Z: 1.27

KTB

Buy

61

out of 100

Grade: C+

Growth: 7.3Profit: 7.5Value: 8.3Quality: 7.3
Piotroski: 6/9Altman Z: 3.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HBIUndervalued (+88.2%)

Margin of Safety

+88.2%

Fair Value

$54.76

Current Price

$6.47

$48.29 discount

UndervaluedFair: $54.76Overvalued
KTBUndervalued (+45.1%)

Margin of Safety

+45.1%

Fair Value

$122.80

Current Price

$69.51

$53.29 discount

UndervaluedFair: $122.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HBI4 strengths · Avg: 10.0/10
PEG RatioValuation
0.1910/10

Growing faster than its price suggests

P/E RatioValuation
5.5x10/10

Attractively priced relative to earnings

Return on EquityProfitability
140.1%10/10

Every $100 of equity generates 140 in profit

EPS GrowthGrowth
793.0%10/10

Earnings expanding 793.0% YoY

KTB4 strengths · Avg: 9.5/10
Return on EquityProfitability
47.1%10/10

Every $100 of equity generates 47 in profit

Revenue GrowthGrowth
45.6%10/10

Revenue surging 45.6% year-over-year

Altman Z-ScoreHealth
3.6510/10

Safe zone — low bankruptcy risk

P/E RatioValuation
17.6x8/10

Attractively priced relative to earnings

Areas to Watch

HBI3 concerns · Avg: 1.7/10
Revenue GrowthGrowth
-100.0%2/10

Revenue declined 100.0%

Altman Z-ScoreHealth
1.272/10

Distress zone — elevated risk

Debt/EquityHealth
5.971/10

Elevated debt levels

KTB1 concerns · Avg: 3.0/10
Profit MarginProfitability
7.2%3/10

7.2% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : HBI

The strongest argument for HBI centers on PEG Ratio, P/E Ratio, Return on Equity. PEG of 0.19 suggests the stock is reasonably priced for its growth.

Bull Case : KTB

The strongest argument for KTB centers on Return on Equity, Revenue Growth, Altman Z-Score. Revenue growth of 45.6% demonstrates continued momentum.

Bear Case : HBI

The primary concerns for HBI are Revenue Growth, Altman Z-Score, Debt/Equity. Debt-to-equity of 5.97 is elevated, increasing financial risk.

Bear Case : KTB

The primary concerns for KTB are Profit Margin.

Key Dynamics to Monitor

HBI profiles as a value stock while KTB is a hypergrowth play — different risk/reward profiles.

HBI carries more volatility with a beta of 1.72 — expect wider price swings.

KTB is growing revenue faster at 45.6% — sustainability is the question.

KTB generates stronger free cash flow (282M), providing more financial flexibility.

Bottom Line

HBI scores higher overall (66/100 vs 61/100). KTB offers better value entry with a 45.1% margin of safety. Both earn "Strong 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.

Hanesbrands Inc

CONSUMER CYCLICAL · APPAREL MANUFACTURING · USA

Hanesbrands Inc. is an American multinational clothing company based in Winston-Salem, North Carolina.

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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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