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

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

Risk & Volatility

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

Insider and Institutional Ownership

93.4% of Crocs shares are owned by institutional investors. 2.7% of Crocs shares are owned by insiders. Comparatively, 53.3% of Tefron shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Crocs and Tefron”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crocs	$4.07 billion	1.00	$950.07 million	$3.07	25.53
Tefron	$293.86 million	0.27	$15.11 million	$0.87	7.39

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.

Profitability

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

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Crocs and Tefron, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crocs	3	5	7	0	2.27
Tefron	0	0	0	0	0.00

Crocs currently has a consensus target price of $103.42, indicating a potential upside of 31.94%. Given Crocs’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Crocs is more favorable than Tefron.

Summary

Crocs beats Tefron on 13 of the 14 factors compared between the two stocks.

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 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.