The video below is part of The Motley Fool's "11 O'Clock Stock" series. where we're recommending a new stock every weekday at 11 a.m. ET on for 50 weekdays. To see a video of co-founder Tom Gardner explaining the series, click here. To see our original recommendation of Adidas (Pink Sheets: ADDYY.PK), click here.

In the video below, Global Gains advisor Tim Hanson explains why he thinks Adidas deserves a place in your portfolio. The shoemaker occupies a competitive athletic apparel field, amid companies like Nike (NYSE: NKE) and Under Armour (NYSE: UA). Yet it trades at levels below its peers, despite a strong global brand. As Hanson said in his original recommendation of the company:

So what about that relationship between Nike and Adidas? If you look over the trailing 15-year period, you'll see that Nike's EV/sales ratio has been approximately 1.5 times higher than Adidas's, and its EV/EBITDA ratio approximately 1.1 times higher. Today, those ratios are 1.9 and 1.2 times, respectively. Does Nike deserve that much of a premium given Adidas' fast-growing sales and the ongoing revival in its previously profit-challenged Reebok division? I certainly don't think so. As the market picks up on this discrepancy, we should see Adidas's multiples expand. 

To see Tim Hanson's full thoughts on Adidas, watch the video below.