Timberland vs. Columbia (TBL, COLM)

During the cold winter months, whose products are keeping you warm: those from Timberland (NYSE: TBL) or those from Columbia (NASDAQ: COLM)? The answer is more important than you might think, particularly to investors that are looking to make a sound investment.

Brian Sozzi, a research analyst at Wall Street Strategies, is more positive on Timberland. “Columbia does have exposure – 16% of annual sales come from Europe,” Sozzi told Benzinga during a recent interview. “But Timberland, about 45% of their sales are devoted to Europe.”

Full Interview: The Line On Hardlines With Brian Sozzi

However, just because Timberland is Sozzi's primary pick does not mean that you should count out Columbia entirely.

“Columbia had probably one of the most exciting product lines to launch in company history,” Sozzi insists. “This company threw a significant amount of dollars at the Omni-Heat, which is a pretty radical shift from the usual, I would say boring, Columbia brand.”

As far as acquisitions are concerned, Sozzi says that Timberland has been in the rumor mill almost as long as he's been covering the company. “My sense is that Timberland would go before Columbia,” Sozzi said. “But there's a common thread here; the families that created each brand [are] still in the mix.”

Sozzi points to the Swartz family, which is still heavily involved with Timberland. “They have a special culture,” Sozzi said. “I think that any company that wants to take them over not only has to pony up a significant amount of money but they also need to meet some of the concerns of the Swartz family that they will preserve [their] environmentally friendly message.”

With regard to Columbia, Sozzi said that he does not see a clear succession plan to the current President and CEO, Tim Boyle. “Gertrude Boyle, who married the founder of Columbia, is still the chairman,” he said. “They're both getting up there in age. My sense in covering Columbia for close to six years is that they've never quite lived up to the earnings potential of the business.”

To hear more from the Wall Street Strategies analyst – including his top retail picks for 2011 – don't miss Benzinga's full interview with Brian Sozzi.