Comparing Gildan Activewear (GIL) & Superior Group of Companies (SGC)

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

Earnings & Valuation

This table compares Gildan Activewear and Superior Group of Companies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gildan Activewear $2.75 billion 2.22 $362.33 million $1.72 16.74
Superior Group of Companies $266.81 million 1.24 $15.02 million $1.25 17.46

Gildan Activewear has higher revenue and earnings than Superior Group of Companies. Gildan Activewear 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.

Insider and Institutional Ownership

73.5% of Gildan Activewear shares are held by institutional investors. Comparatively, 36.0% of Superior Group of Companies shares are held by institutional investors. 33.2% of Superior Group of Companies shares are held by company 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.

Risk & Volatility

Gildan Activewear has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Superior Group of Companies has a beta of -0.21, suggesting that its stock price is 121% less volatile than the S&P 500.

Dividends

Gildan Activewear pays an annual dividend of $0.45 per share and has a dividend yield of 1.6%. Superior Group of Companies pays an annual dividend of $0.38 per share and has a dividend yield of 1.7%. Gildan Activewear pays out 26.2% of its earnings in the form of a dividend. Superior Group of Companies pays out 30.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Gildan Activewear has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Gildan Activewear and Superior Group of Companies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gildan Activewear 0 6 5 0 2.45
Superior Group of Companies 0 0 1 0 3.00

Gildan Activewear currently has a consensus target price of $34.00, suggesting a potential upside of 18.06%. Superior Group of Companies has a consensus target price of $29.00, suggesting a potential upside of 32.84%. Given Superior Group of Companies’ stronger consensus rating and higher possible upside, analysts clearly believe Superior Group of Companies is more favorable than Gildan Activewear.

Profitability

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

Net Margins Return on Equity Return on Assets
Gildan Activewear 12.69% 18.06% 12.10%
Superior Group of Companies 4.90% 13.93% 8.23%

Summary

Gildan Activewear beats Superior Group of Companies on 12 of the 17 factors compared between the two stocks.

Gildan Activewear Company Profile

Gildan Activewear Inc. manufactures and sells a range of apparel products in the United States, Canada, Mexico, Europe, the Asia-Pacific, and Latin America. It operates in two segments, Printwear and Branded Apparel. The company manufactures and markets active wear products, including T-shirts, fleece tops and bottoms, and sport shirts under Gildan, Gildan Performance, Gildan Platinum, Gildan Hammer, Smart Basics, Comfort Colors, American Apparel, Anvil, Alstyle, Gold Toe, and Mossy Oak brands. It also offers athletic, dress, casual, workwear, legwear, and therapeutic socks under the Gildan, Gildan Platinum, Smart Basics, Under Armour, Gold Toe, PowerSox, GT a Gold Toe Brand, Silver Toe, Signature Gold by Goldtoe, Peds, MediPeds, Kushyfoot, Therapy Plus, All Pro, and Mossy Oak brand names. In addition, the company provides men's and boys' top and bottom underwear, and ladies panties under Gildan, Gildan Platinum, Smart Basics, and American Apparel brand names; hosiery comprising sheer panty hose, tights, and leggings under Secret, Silks, Secret Silky, Peds, and American Apparel brand names; and ladies shapewear and intimates accessories under Secret and American Apparel brand names, as well as other products, such as denim, jackets, sweaters, bodysuits, skirts, dresses, and accessories. Gildan Activewear Inc. serves wholesale distributors, screen printers/embellishers, retailers, and individual consumers. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was incorporated in 1984 and is headquartered in Montreal, Canada.

Superior Group of Companies Company Profile

Superior Uniform Group, Inc. manufactures and sells apparel and accessories in the United States and internationally. It operates through three segments: Uniforms and Related Products, Remote Staffing Solutions, and Promotional Products. The Uniforms and Related Products segment manufactures and sells a range of uniforms, corporate identity apparel, career apparel, and accessories for the personnel of hospitals and health facilities; hotels, commercial buildings, residential buildings, and food service facilities; retail stores; general and special purpose industrial uses; commercial enterprises; public and private safety and security organizations; and miscellaneous service uses. It also provides various products directly related to uniforms and service apparel; and industrial laundry bags for linen suppliers and industrial launderers. This segment sells its products under the Fashion Seal Healthcare, HPI Direct, Superior I.D., Worklon, and UniVogue brand names. The Remote Staffing Solutions segment provides multilingual telemarketing and office support solutions through the recruitment and employment of qualified English-speaking agents. The Promotional Products segment produces and sells promotional products and branded merchandise under the BAMKO, Public Identity, and Tangerine brands to corporate clients and universities. The company was formerly known as Superior Surgical Mfg. Co., Inc. and changed its name to Superior Uniform Group, Inc. in 1998. Superior Uniform Group, Inc. was founded in 1920 and is headquartered in Seminole, Florida.

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