Financial Survey: Savers Value Village (NYSE:SVV) versus Superior Group of Companies (NASDAQ:SGC)

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

Volatility & Risk

Superior Group of Companies has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Savers Value Village has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Institutional and Insider Ownership

33.8% of Superior Group of Companies shares are held by institutional investors. Comparatively, 98.8% of Savers Value Village shares are held by institutional investors. 29.1% of Superior Group of Companies shares are held by insiders. Comparatively, 3.5% of Savers Value Village 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 Savers Value Village’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Superior Group of Companies	1.51%	4.45%	2.06%
Savers Value Village	1.29%	12.47%	2.68%

Analyst Recommendations

This is a summary of recent recommendations for Superior Group of Companies and Savers Value Village, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Superior Group of Companies	0	1	2	0	2.67
Savers Value Village	1	2	4	0	2.43

Superior Group of Companies currently has a consensus target price of $15.50, suggesting a potential upside of 25.71%. Savers Value Village has a consensus target price of $14.00, suggesting a potential upside of 52.42%. Given Savers Value Village’s higher probable upside, analysts clearly believe Savers Value Village is more favorable than Superior Group of Companies.

Valuation & Earnings

This table compares Superior Group of Companies and Savers Value Village”s top-line 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	0.34	$7.00 million	$0.57	21.63
Savers Value Village	$1.68 billion	0.84	$22.64 million	$0.14	65.61

Savers Value Village has higher revenue and earnings than Superior Group of Companies. Superior Group of Companies is trading at a lower price-to-earnings ratio than Savers Value Village, indicating that it is currently the more affordable of the two stocks.

Summary

Savers Value Village beats Superior Group of Companies on 9 of the 14 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 Savers Value Village

Savers Value Village, Inc. sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Value Village Boutique, Village des Valeurs, Unique, and 2nd Avenue brands. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners and then processes, selects, prices, merchandises, and sells them in its stores. It serves retail and wholesale customers. The company was formerly known as S-Evergreen Holding LLC and changed its name to Savers Value Village, Inc. in January 2022. Savers Value Village, Inc. was founded in 1954 and is based in Bellevue, Washington.