Critical Review: Superior Group of Companies (NASDAQ:SGC) and Vince (NYSE:VNCE)

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

Volatility and Risk

Vince has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Superior Group of Companies has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.

Earnings and Valuation

This table compares Vince and Superior Group of Companies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vince	$293.45 million	0.06	-$19.05 million	($2.22)	-0.58
Superior Group of Companies	$565.68 million	0.28	$12.00 million	$0.45	22.36

Superior Group of Companies has higher revenue and earnings than Vince. Vince 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 Ratings

This is a summary of recent recommendations for Vince and Superior Group of Companies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vince	0	0	1	0	3.00
Superior Group of Companies	0	0	3	0	3.00

Vince currently has a consensus target price of $2.50, suggesting a potential upside of 94.40%. Superior Group of Companies has a consensus target price of $17.00, suggesting a potential upside of 68.99%. Given Vince’s higher probable upside, equities research analysts clearly believe Vince is more favorable than Superior Group of Companies.

Insider & Institutional Ownership

16.1% of Vince shares are owned by institutional investors. Comparatively, 33.8% of Superior Group of Companies shares are owned by institutional investors. 61.0% of Vince shares are owned by company insiders. Comparatively, 26.7% of Superior Group of Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vince	-9.66%	1.89%	0.38%
Superior Group of Companies	1.30%	3.70%	1.80%

Summary

Superior Group of Companies beats Vince on 11 of the 13 factors compared between the two stocks.

About Vince

Vince Holding Corp. provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale, Vince Direct-to-Consumer segments. The company offers a range of men's and women's products, such as cashmere sweaters, silk blouses, leather and suede products, and jackets, dresses, skirts, pants, t-shirts, footwear, outerwear, and accessories, as well as woven shirts, core and fashion pants, and blazers under the Vince brand. It sells its products directly to consumers through its branded specialty retail stores and outlet stores, as well as through its vince.com e-commerce platform and subscription business through Vince Unfold, vinceunfold.com; and to department stores and specialty stores. The company was formerly known as Apparel Holding Corp. and changed its name to Vince Holding Corp. in November 2013. The company was founded in 2002 and is headquartered in New York, New York.

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.