Head to Head Comparison: Puma (OTCMKTS:PMMAF) versus Superior Group of Companies (NASDAQ:SGC)

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

Insider & Institutional Ownership

4.7% of Puma shares are owned by institutional investors. Comparatively, 33.8% of Superior Group of Companies shares are owned by institutional investors. 29.1% of Superior Group of Companies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Puma and Superior Group of Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Puma	0	1	1	0	2.50
Superior Group of Companies	0	1	1	0	2.50

Superior Group of Companies has a consensus price target of $18.00, indicating a potential upside of 50.63%. Given Superior Group of Companies’ higher possible upside, analysts clearly believe Superior Group of Companies is more favorable than Puma.

Earnings & Valuation

This table compares Puma and Superior Group of Companies”s 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	($3.12)	-9.53
Superior Group of Companies	$566.18 million	0.34	$7.00 million	$0.55	21.73

Superior Group of Companies has higher revenue and earnings than Puma. Puma 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 Puma and Superior Group of Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Puma	N/A	N/A	N/A
Superior Group of Companies	1.44%	5.29%	2.47%

Dividends

Puma pays an annual dividend of $0.38 per share and has a dividend yield of 1.3%. Superior Group of Companies pays an annual dividend of $0.56 per share and has a dividend yield of 4.7%. Puma pays out -12.0% of its earnings in the form of a dividend. Superior Group of Companies pays out 101.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Superior Group of Companies beats Puma on 10 of the 11 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 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.