Critical Contrast: Hugo Boss (OTCMKTS:BOSSY) versus Superior Group of Companies (NASDAQ:SGC)

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

Dividends

Hugo Boss pays an annual dividend of $0.21 per share and has a dividend yield of 2.5%. Superior Group of Companies pays an annual dividend of $0.56 per share and has a dividend yield of 4.9%. Hugo Boss pays out 25.3% of its earnings in the form of a dividend. Superior Group of Companies pays out 121.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current ratings for Hugo Boss and Superior Group of Companies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hugo Boss	0	2	0	0	2.00
Superior Group of Companies	0	1	2	0	2.67

Superior Group of Companies has a consensus target price of $16.00, indicating a potential upside of 38.89%. Given Superior Group of Companies’ stronger consensus rating and higher probable upside, analysts plainly believe Superior Group of Companies is more favorable than Hugo Boss.

Volatility & Risk

Hugo Boss has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Superior Group of Companies has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hugo Boss	5.92%	17.43%	7.02%
Superior Group of Companies	1.24%	3.62%	1.68%

Institutional and Insider Ownership

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

Valuation and Earnings

This table compares Hugo Boss and Superior Group of Companies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hugo Boss	$4.83 billion	0.60	$282.26 million	$0.83	10.11
Superior Group of Companies	$566.18 million	0.32	$7.00 million	$0.46	25.04

Hugo Boss has higher revenue and earnings than Superior Group of Companies. Hugo Boss 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.

About Hugo Boss

Hugo Boss AG, together with its subsidiaries, provides apparels, shoes, and accessories for men and women worldwide. It also offers licensed products comprising of fragrances, eyewear, watches, children’s fashion, equestrian, and cycling. The company markets and sells its products under the BOSS and HUGO brand names through freestanding stores, shop-in-shops, factory outlets, multi-brand stores, and franchise business, as well as online retailers, distribution, and stores. Hugo Boss AG was founded in 1924 and is headquartered in Metzingen, 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.