Analyzing Superior Group of Companies (NASDAQ:SGC) & ON (NYSE:ONON)

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

Institutional & Insider Ownership

33.8% of Superior Group of Companies shares are held by institutional investors. Comparatively, 36.4% of ON shares are held by institutional investors. 29.1% of Superior Group of Companies shares are held by insiders. Comparatively, 68.6% of ON shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Superior Group of Companies	1.44%	5.29%	2.47%
ON	12.09%	22.92%	13.33%

Earnings and Valuation

This table compares Superior Group of Companies and ON”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Superior Group of Companies	$566.18 million	0.36	$7.00 million	$0.55	22.93
ON	$3.22 billion	6.00	$245.87 million	$1.47	20.59

ON has higher revenue and earnings than Superior Group of Companies. ON 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 Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Superior Group of Companies	0	1	1	0	2.50
ON	2	4	20	2	2.79

Superior Group of Companies currently has a consensus target price of $18.00, suggesting a potential upside of 42.74%. ON has a consensus target price of $44.12, suggesting a potential upside of 45.78%. Given ON’s stronger consensus rating and higher possible upside, analysts clearly believe ON is more favorable than Superior Group of Companies.

Volatility and Risk

Superior Group of Companies has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, ON has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500.

Summary

ON beats Superior Group of Companies on 14 of the 15 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 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.

About ON

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.