Crocs (NASDAQ:CROX) & Superior Group of Companies (NASDAQ:SGC) Critical Analysis

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Crocs and Superior Group of Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crocs	3	9	3	0	2.00
Superior Group of Companies	0	1	2	0	2.67

Crocs presently has a consensus price target of $101.45, suggesting a potential upside of 13.98%. Superior Group of Companies has a consensus price target of $16.00, suggesting a potential upside of 54.14%. Given Superior Group of Companies’ stronger consensus rating and higher possible upside, analysts clearly believe Superior Group of Companies is more favorable than Crocs.

Institutional and Insider Ownership

93.4% of Crocs shares are held by institutional investors. Comparatively, 33.8% of Superior Group of Companies shares are held by institutional investors. 3.0% of Crocs shares are held by company insiders. Comparatively, 26.7% of Superior Group of Companies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Crocs 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
Crocs	$4.04 billion	1.11	-$81.20 million	($1.26)	-70.64
Superior Group of Companies	$566.18 million	0.29	$7.00 million	$0.46	22.57

Superior Group of Companies has lower revenue, but higher earnings than Crocs. Crocs 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Crocs	-2.01%	45.17%	15.18%
Superior Group of Companies	1.24%	3.62%	1.68%

Volatility & Risk

Crocs has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Superior Group of Companies has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

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.

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.