Unifi (NYSE:UFI – Get Free Report) and Xcel Brands (NASDAQ:XELB – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Profitability
This table compares Unifi and Xcel Brands’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Unifi | -2.91% | -6.71% | -4.01% |
| Xcel Brands | -343.68% | -109.17% | -42.19% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Unifi and Xcel Brands, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Unifi | 1 | 0 | 0 | 0 | 1.00 |
| Xcel Brands | 1 | 0 | 1 | 0 | 2.00 |
Volatility and Risk
Unifi has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Xcel Brands has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.
Institutional & Insider Ownership
67.7% of Unifi shares are owned by institutional investors. Comparatively, 18.5% of Xcel Brands shares are owned by institutional investors. 20.5% of Unifi shares are owned by insiders. Comparatively, 29.5% of Xcel Brands shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Unifi and Xcel Brands”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Unifi | $531.30 million | 0.21 | -$24.56 million | ($0.82) | -7.26 |
| Xcel Brands | $4.94 million | 0.52 | -$17.46 million | ($3.39) | -0.11 |
Xcel Brands has lower revenue, but higher earnings than Unifi. Unifi is trading at a lower price-to-earnings ratio than Xcel Brands, indicating that it is currently the more affordable of the two stocks.
Summary
Xcel Brands beats Unifi on 7 of the 13 factors compared between the two stocks.
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.
About Xcel Brands
Xcel Brands, Inc., together with its subsidiaries, operates as a media and consumer products company in the United States. The company designs, produces, markets, wholesales, and sells branded apparel, footwear, accessories, jewelry, home goods, and other consumer products; and acquires consumer lifestyle brands, including the Isaac Mizrahi, the LOGO by Lori Goldstein, the Judith Ripka, the Halston brand, the C Wonder, the TowerHill by Christie Brinkley brand (the CB brand), and other brands, as well as manages the Longaberger brand. It licenses its brands to third parties; and designs, produces, markets, and distributes through an omni-channel retail sales strategy, which include distribution through interactive television, digital live-stream shopping, brick-and-mortar retail, and e-commerce channels. The company also offers live streaming, social media and other marketing, and public relations support for its brands. In addition, it markets its brands through www.isaacmizrahi.com; www.halston.com; www.judithripka.com; www.cwonder.com; www.lorigoldstein.com; and www.longaberger.com. Xcel Brands, Inc. was founded in 2011 and is headquartered in New York, New York.
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