Financial Comparison: Superior Group of Companies (NASDAQ:SGC) & ON (NYSE:ONON)

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

Valuation & Earnings

This table compares ON and Superior Group of Companies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ON	$3.64 billion	4.76	$245.87 million	$1.47	18.47
Superior Group of Companies	$566.18 million	0.35	$7.00 million	$0.55	22.55

ON has higher revenue and earnings than Superior Group of Companies. ON 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.

Institutional & Insider Ownership

36.4% of ON shares are held by institutional investors. Comparatively, 33.8% of Superior Group of Companies shares are held by institutional investors. 68.6% of ON shares are held by company insiders. Comparatively, 29.1% of Superior Group of Companies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ON	12.09%	22.92%	13.33%
Superior Group of Companies	1.44%	5.29%	2.47%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ON	2	5	18	2	2.74
Superior Group of Companies	0	1	1	0	2.50

ON presently has a consensus target price of $44.75, indicating a potential upside of 64.81%. Superior Group of Companies has a consensus target price of $18.00, indicating a potential upside of 45.16%. Given ON’s stronger consensus rating and higher probable upside, equities research analysts clearly believe ON is more favorable than Superior Group of Companies.

Risk & Volatility

ON has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500. Comparatively, Superior Group of Companies has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500.

Summary

ON beats Superior Group of Companies on 14 of the 15 factors compared between the two stocks.

About ON

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.

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.