Head to Head Analysis: Superior Group of Companies (NASDAQ:SGC) & Tefron (OTCMKTS:TFRFF)

Superior Group of Companies (NASDAQ:SGC) and Tefron (OTCMKTS:TFRFF) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Volatility & Risk

Superior Group of Companies has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Tefron has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.

Profitability

This table compares Superior Group of Companies and Tefron’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Superior Group of Companies	1.51%	4.45%	2.06%
Tefron	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Superior Group of Companies and Tefron, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Superior Group of Companies	0	1	2	0	2.67
Tefron	0	0	0	0	0.00

Superior Group of Companies presently has a consensus target price of $15.50, suggesting a potential upside of 18.87%. Given Superior Group of Companies’ stronger consensus rating and higher probable upside, analysts clearly believe Superior Group of Companies is more favorable than Tefron.

Earnings and Valuation

This table compares Superior Group of Companies and Tefron”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Superior Group of Companies	$566.18 million	0.36	$7.00 million	$0.57	22.88
Tefron	$237.25 million	0.34	$15.11 million	$0.40	16.07

Tefron has lower revenue, but higher earnings than Superior Group of Companies. Tefron is trading at a lower price-to-earnings ratio than Superior Group of Companies, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

33.8% of Superior Group of Companies shares are held by institutional investors. 29.1% of Superior Group of Companies shares are held by insiders. Comparatively, 53.3% of Tefron shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Superior Group of Companies beats Tefron on 12 of the 14 factors compared between the two stocks.

About Superior Group of Companies

Superior Group of Companies, Inc. manufactures and sells apparel and accessories in the United States and internationally. It operates through three segments: Branded Products, Healthcare Apparel, and Contact Centers. The Branded Products segment produces and sells customized merchandising solutions, promotional products, and branded uniform to chain retailer, food service, entertainment, technology, transportation, and other industries under BAMKO and HPI brands. The Healthcare Apparel segment manufactures and sells healthcare apparel, such as scrubs, lab coats, protective apparel, and patient gowns under the Fashion Seal Healthcare, CID Resources and Wink, and Carhartt brand names. This segment sells healthcare service apparel to healthcare laundries, dealers, distributors, and physical and e-commerce retailers. The Contact Centers segment offers outsourced, nearshore business process outsourcing, and contact and call-center support services. The company was formerly known as Superior Uniform Group, Inc. and changed its name to Superior Group of Companies, Inc. in May 2018. Superior Group of Companies, Inc. was founded in 1920 and is headquartered in St. Petersburg, Florida.

About Tefron

Tefron Ltd. engages in the design, development, production, marketing, and sale of intimate apparel and activewear, and leisurewear worldwide. The company through Brands and Retail segments. It offers women’s intimate, and active and lounge wear; and men’s underwear, activewear, and baselayer products. Tefron Ltd. was incorporated in 1977 and is headquartered in Misgav, Israel.