Critical Comparison: Crocs (NASDAQ:CROX) and Tefron (OTCMKTS:TFRFF)

Tefron (OTCMKTS:TFRFF) and Crocs (NASDAQ:CROX) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Tefron and Crocs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tefron	0	0	0	0	0.00
Crocs	2	6	7	0	2.33

Crocs has a consensus price target of $103.42, suggesting a potential upside of 37.89%. Given Crocs’ stronger consensus rating and higher probable upside, analysts clearly believe Crocs is more favorable than Tefron.

Profitability

This table compares Tefron and Crocs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tefron	4.31%	15.13%	7.68%
Crocs	5.72%	44.15%	16.12%

Insider and Institutional Ownership

93.4% of Crocs shares are owned by institutional investors. 53.3% of Tefron shares are owned by company insiders. Comparatively, 3.0% of Crocs shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Tefron has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Crocs has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.

Earnings & Valuation

This table compares Tefron and Crocs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tefron	$293.86 million	0.27	$15.11 million	$0.87	7.39
Crocs	$4.07 billion	0.96	$950.07 million	$3.07	24.43

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

Summary

Crocs beats Tefron on 13 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 Crocs

Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and children under Crocs and HEYDUDE Brand in the United States and internationally. The company offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, charms, flip flops, sneakers, and slippers. It sells its products through wholesalers, retail stores, e-commerce sites, third-party marketplaces, and kiosks/store-in-store locations. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.