Head-To-Head Comparison: Under Armour (NYSE:UA) vs. Tefron (OTCMKTS:TFRFF)

Tefron (OTCMKTS:TFRFF) and Under Armour (NYSE:UA) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Insider & Institutional Ownership

36.4% of Under Armour shares are owned by institutional investors. 53.3% of Tefron shares are owned by company insiders. Comparatively, 15.6% of Under Armour shares are owned by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tefron	2.14%	6.72%	3.44%
Under Armour	-10.44%	1.48%	0.56%

Risk & Volatility

Tefron has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Under Armour has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Tefron and Under Armour, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tefron	0	0	0	0	0.00
Under Armour	2	0	0	0	1.00

Earnings & Valuation

This table compares Tefron and Under Armour”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tefron	$293.86 million	0.28	$15.11 million	$0.40	16.08
Under Armour	$5.16 billion	0.62	-$201.27 million	($1.22)	-6.18

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

Summary

Tefron beats Under Armour on 7 of the 12 factors compared between the two stocks.

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.

About Under Armour

Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications. In addition, the company provides accessories, which include gloves, bags, headwear, and sports masks; and digital subscription, advertising, and other digital business services. It primarily offers its products under the UNDER ARMOUR, HEATGEAR, COLDGEAR, HOVR, UA, PROTECT THIS HOUSE, I WILL, UA Logo, ARMOUR FLEECE, and ARMOUR BRA brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of 439 Brand and Factory House stores, as well as through e-commerce websites. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. Under Armour, Inc. was incorporated in 1996 and is headquartered in Baltimore, Maryland.