Critical Analysis: Innovative Designs (OTCMKTS:IVDN) & Tefron (OTCMKTS:TFRFF)

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tefron	$293.86 million	0.27	$15.11 million	$0.94	6.87
Innovative Designs	$1.38 million	7.25	$100,000.00	$0.02	13.00

Tefron has higher revenue and earnings than Innovative Designs. Tefron is trading at a lower price-to-earnings ratio than Innovative Designs, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tefron and Innovative Designs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tefron	4.57%	16.93%	8.39%
Innovative Designs	16.04%	24.97%	21.29%

Volatility and Risk

Tefron has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Innovative Designs has a beta of -3.08, meaning that its share price is 408% less volatile than the S&P 500.

Summary

Innovative Designs beats Tefron on 5 of the 9 factors compared between the two stocks.

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.

About Innovative Designs

Innovative Designs, Inc. engages in manufacture and marketing of cold weather recreational and industrial clothing products in the United States and Canada. The company operates in two segments, Apparel and House Wrap. It offers arctic armor line products, including jackets, bibs, and gloves for ice fisherman, snowmobilers, utility workers, oil/gas pipeline workers, railroad workers, construction workers, ski resort workers, and police and first responders; and house wrap that provides barrier protection and moisture vapor transmission and insulation for the building construction industry. In addition, it offers INSULTEX material in bulk to non-competing customers; products that restore the waterproof character of the outer side of its arctic armor clothing; and cold weather headgears and base insulation clothing products. The company primarily sells its products through independent sales agents, agencies, retailers, and distributors, as well as through website. The company was incorporated in 2002 and is based in Pittsburgh, Pennsylvania.