Comparing Tefron (OTCMKTS:TFRFF) and Crocs (NASDAQ:CROX)

Crocs (NASDAQ:CROX) and Tefron (OTCMKTS:TFRFF) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for Crocs and Tefron, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crocs	2	6	7	0	2.33
Tefron	0	0	0	0	0.00

Crocs currently has a consensus price target of $101.92, indicating a potential upside of 22.10%. Given Crocs’ stronger consensus rating and higher possible upside, research analysts clearly believe Crocs is more favorable than Tefron.

Risk and Volatility

Crocs has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Tefron has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Insider and Institutional Ownership

93.4% of Crocs shares are owned by institutional investors. 3.0% of Crocs shares are owned by insiders. Comparatively, 53.3% of Tefron shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Crocs and Tefron’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crocs	5.72%	44.15%	16.12%
Tefron	4.31%	15.13%	7.68%

Earnings and Valuation

This table compares Crocs and Tefron”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crocs	$4.10 billion	1.11	$950.07 million	$3.73	22.38
Tefron	$293.86 million	0.27	$15.11 million	$0.87	7.39

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

Summary

Crocs beats Tefron on 13 of the 14 factors compared between the two stocks.

About Crocs

Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and children under Crocs and HEYDUDE Brand in the United States and internationally. The company offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, charms, flip flops, sneakers, and slippers. It sells its products through wholesalers, retail stores, e-commerce sites, third-party marketplaces, and kiosks/store-in-store locations. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.

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.