Analyzing Tefron (OTCMKTS:TFRFF) & Superior Group of Companies (NASDAQ:SGC)

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

Insider & Institutional Ownership

33.8% of Superior Group of Companies shares are held by institutional investors. 53.3% of Tefron shares are held by insiders. Comparatively, 29.1% of Superior Group of Companies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tefron	2.14%	6.72%	3.44%
Superior Group of Companies	1.51%	4.45%	2.06%

Risk and Volatility

Tefron has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, Superior Group of Companies has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tefron	$293.86 million	0.28	$15.11 million	$0.40	16.08
Superior Group of Companies	$566.18 million	0.35	$7.00 million	$0.57	22.37

Tefron has higher earnings, but lower revenue 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.

Analyst Ratings

This is a summary of current ratings and target prices for Tefron and Superior Group of Companies, as reported by MarketBeat.

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

Superior Group of Companies has a consensus price target of $15.50, indicating a potential upside of 21.57%. Given Superior Group of Companies’ stronger consensus rating and higher probable upside, analysts plainly believe Superior Group of Companies is more favorable than Tefron.

Summary

Superior Group of Companies beats Tefron on 9 of the 14 factors compared between the two stocks.

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.

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.