Critical Review: Superior Group of Companies (NASDAQ:SGC) & Innovative Designs (OTCMKTS:IVDN)

Superior Group of Companies (NASDAQ:SGC) and Innovative Designs (OTCMKTS:IVDN) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Superior Group of Companies and Innovative Designs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Superior Group of Companies	0	1	3	0	2.75
Innovative Designs	0	0	0	0	0.00

Superior Group of Companies currently has a consensus price target of $17.33, indicating a potential upside of 69.93%. Given Superior Group of Companies’ stronger consensus rating and higher possible upside, research analysts clearly believe Superior Group of Companies is more favorable than Innovative Designs.

Earnings & Valuation

This table compares Superior Group of Companies and Innovative Designs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Superior Group of Companies	$565.68 million	0.29	$12.00 million	$0.36	28.33
Innovative Designs	$2.77 million	3.47	$500,000.00	$0.03	8.33

Superior Group of Companies has higher revenue and earnings than Innovative Designs. Innovative Designs 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Superior Group of Companies	1.00%	2.89%	1.35%
Innovative Designs	17.87%	27.09%	24.11%

Risk & Volatility

Superior Group of Companies has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Innovative Designs has a beta of -2.88, suggesting that its share price is 388% less volatile than the S&P 500.

Insider & Institutional Ownership

33.8% of Superior Group of Companies shares are owned by institutional investors. 26.7% of Superior Group of Companies shares are owned by insiders. Comparatively, 24.4% of Innovative Designs shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Superior Group of Companies beats Innovative Designs on 10 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 Innovative Designs

Innovative Designs, Inc. engages in manufacture and marketing of cold weather recreational and industrial clothing products in the United States and Canada. The company operates in two segments, Apparel and House Wrap. It offers arctic armor line products, including jackets, bibs, and gloves for ice fisherman, snowmobilers, utility workers, oil/gas pipeline workers, railroad workers, construction workers, ski resort workers, and police and first responders; and house wrap that provides barrier protection and moisture vapor transmission and insulation for the building construction industry. In addition, it offers INSULTEX material in bulk to non-competing customers; products that restore the waterproof character of the outer side of its arctic armor clothing; and cold weather headgears and base insulation clothing products. The company primarily sells its products through independent sales agents, agencies, retailers, and distributors, as well as through website. The company was incorporated in 2002 and is based in Pittsburgh, Pennsylvania.