Critical Contrast: Unifi (NYSE:UFI) vs. Puma (OTCMKTS:PUMSY)

Puma (OTCMKTS:PUMSY) and Unifi (NYSE:UFI) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Insider and Institutional Ownership

67.7% of Unifi shares are owned by institutional investors. 18.6% of Unifi shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Puma and Unifi, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Puma	0	4	3	0	2.43
Unifi	1	0	0	0	1.00

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Puma	N/A	N/A	N/A	N/A	N/A
Unifi	$571.34 million	0.21	-$20.35 million	($0.45)	-14.22

Puma has higher earnings, but lower revenue than Unifi.

Profitability

This table compares Puma and Unifi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Puma	N/A	N/A	N/A
Unifi	-1.50%	-14.14%	-8.28%

Summary

Puma beats Unifi on 5 of the 8 factors compared between the two stocks.

About Puma

PUMA SE, together with its subsidiaries, engages in the development and sale of athletic footwear, apparel, and accessories in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company provides sports lifestyle products for football, handball, rugby, cricket, volleyball, track and field, motorsports, golf, and basketball. It issues licenses to independent partners to design, develop, manufacture, and sell watches, glasses, safety shoes, workwear, and gaming accessories. The company sells its products under the PUMA and Cobra Golf brands through retail stores, factory outlets, and online stores. The company was formerly known as PUMA AG and changed its name to PUMA SE in July 2011. PUMA SE was founded in 1919 and is headquartered in Herzogenaurach, Germany.

About Unifi

Unifi, Inc., together with its subsidiaries, engages in the manufacture and sale of recycled and synthetic products in North America, Central America, South America, Asia, and Europe. Its polyester products include partially oriented yarn, textured, solution and package dyed, twisted, beamed, and draw wound yarns in virgin or recycled varieties; and nylon products comprise virgin or recycled textured, solution dyed, and spandex covered yarns. The company also provides recycled solutions made from pre-consumer and post-consumer waste, such as plastic bottle flakes, polyester polymer beads, and staple fiber. It offers recycled and synthetic products primarily to yarn manufacturers, knitters, and weavers that produces yarn and fabric for the apparel, hosiery, automotive, home furnishings, industrial, medical, and other end-use markets. The company sells its products through sales force and independent sales agents under the REPREVE brand. Unifi, Inc. was incorporated in 1969 and is headquartered in Greensboro, North Carolina.