Critical Contrast: Superior Group of Companies (NASDAQ:SGC) vs. Hanesbrands (NYSE:HBI)

Hanesbrands (NYSE:HBI) and Superior Group of Companies (NASDAQ:SGC) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Risk & Volatility

Hanesbrands has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Superior Group of Companies has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Hanesbrands and Superior Group of Companies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hanesbrands	0	3	1	0	2.25
Superior Group of Companies	0	0	3	0	3.00

Hanesbrands presently has a consensus target price of $6.50, suggesting a potential upside of 0.93%. Superior Group of Companies has a consensus target price of $17.33, suggesting a potential upside of 53.94%. Given Superior Group of Companies’ stronger consensus rating and higher probable upside, analysts clearly believe Superior Group of Companies is more favorable than Hanesbrands.

Insider & Institutional Ownership

80.3% of Hanesbrands shares are owned by institutional investors. Comparatively, 33.8% of Superior Group of Companies shares are owned by institutional investors. 0.5% of Hanesbrands shares are owned by company insiders. Comparatively, 26.7% of Superior Group of Companies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hanesbrands	2.49%	226.31%	5.19%
Superior Group of Companies	1.44%	4.22%	2.00%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hanesbrands	$3.51 billion	0.65	-$320.43 million	$0.24	26.83
Superior Group of Companies	$565.68 million	0.32	$12.00 million	$0.51	22.08

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

Summary

Hanesbrands beats Superior Group of Companies on 8 of the 14 factors compared between the two stocks.

About Hanesbrands

Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells a range of range of innerwear apparels for men, women, and children in the Americas, Europe, the Asia pacific, and internationally. The company operates through three segments: Innerwear, Activewear, and International. It sells men’s underwear, women’s panties, children’s underwear, and socks, as well as intimate apparel comprising bras and shapewear; home goods; activewear apparel comprising T-shirts, fleece, performance apparel, sport shirts, performance T-shirts and shorts, sports bras, teamwear, and thermals; and licensed logo apparel in collegiate bookstores and mass retail channels. The company licenses its Champion name for footwear and sports accessories. It offers its products under the Hanes, Champion, Maidenform, JMS/Just My Size, Bali, Polo Ralph Lauren, Playtex, Alternative, Gear for Sports, Comfortwash, Hanes Beefy-T, Bonds, Sheridan, Bras N Things, Wonderbra, Berlei, Zorba, Sol y Oro, Maidenform, Rinbros, Bellinda, and RITMO brand names through retailers, wholesalers, and third-party embellishers. Hanesbrands Inc. was founded in 1901 and is headquartered in Winston-Salem, North Carolina.

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.