Superior Group of Companies (NASDAQ:SGC – Get Free Report) and Wacoal (OTCMKTS:WACLY – Get Free Report) are both small-cap consumer cyclical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.
Superior Group of Companies pays an annual dividend of $0.56 per share and has a dividend yield of 7.1%. Wacoal pays an annual dividend of $2.38 per share and has a dividend yield of 2.2%. Superior Group of Companies pays out -107.7% of its earnings in the form of a dividend. Wacoal pays out -383.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Superior Group of Companies has raised its dividend for 2 consecutive years. Superior Group of Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Superior Group of Companies and Wacoal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Superior Group of Companies||-1.54%||2.91%||1.23%|
Earnings & Valuation
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Superior Group of Companies||$547.25 million||0.24||-$31.97 million||($0.52)||-15.21|
|Wacoal||$1.40 billion||0.93||-$13.14 million||($0.62)||-172.56|
Wacoal has higher revenue and earnings than Superior Group of Companies. Wacoal 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
34.6% of Superior Group of Companies shares are owned by institutional investors. 27.1% of Superior Group of Companies shares are owned by insiders. Comparatively, 0.8% of Wacoal shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Superior Group of Companies has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Wacoal has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Superior Group of Companies and Wacoal, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Superior Group of Companies||0||0||2||0||3.00|
Superior Group of Companies currently has a consensus price target of $15.50, suggesting a potential upside of 95.95%. Given Superior Group of Companies’ higher possible upside, equities research analysts clearly believe Superior Group of Companies is more favorable than Wacoal.
Superior Group of Companies beats Wacoal on 11 of the 16 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 retail, hotel, food service, entertainment, technology, transportation, and other industries. The Healthcare Apparel segment manufactures and sells healthcare apparel, such as scrubs, lab coats, protective apparel, and patient gowns. This segment sells healthcare service apparel to healthcare laundries, dealers, distributors, and physical, and e-commerce retailers. The Contact Centers segment offers 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 Seminole, Florida.
Wacoal Holdings Corp. engages in the manufacturing, wholesale, and retail sale of intimate apparel, outerwear, sportswear, and other textile products and accessories in Japan, Asia, Oceania, the United States, and Europe. The company operates through Wacoal Business (Domestic), Wacoal Business (Overseas), Peach John Business, and Other Businesses segments. It offers intimate apparel mainly women's foundation wear, lingerie, nightwear and children's underwear; and outerwear, sportswear, and other textile products and accessories. The company also engages in the restaurant, cultural and service-related businesses; and manufacture and sale of mannequins and fixtures, interior design work, and other textile-related businesses. It offers products through department stores, general merchandisers, and other general retailers in Japan, as well as directly managed retail stores, E-commerce websites, and distributors in Japan and internationally. Wacoal Holdings Corp. was founded in 1946 and is headquartered in Kyoto, Japan.
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