Perry Ellis International (NASDAQ: PERY) and Superior Uniform Group (NASDAQ:SGC) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Dividends

Superior Uniform Group pays an annual dividend of $0.38 per share and has a dividend yield of 1.7%. Perry Ellis International does not pay a dividend. Superior Uniform Group pays out 33.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations and price targets for Perry Ellis International and Superior Uniform Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Perry Ellis International 0 0 4 0 3.00
Superior Uniform Group 0 0 1 0 3.00

Perry Ellis International presently has a consensus target price of $29.00, suggesting a potential upside of 63.66%. Superior Uniform Group has a consensus target price of $26.00, suggesting a potential upside of 16.33%. Given Perry Ellis International’s higher possible upside, equities research analysts plainly believe Perry Ellis International is more favorable than Superior Uniform Group.

Volatility and Risk

Perry Ellis International has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Superior Uniform Group has a beta of -0.03, suggesting that its share price is 103% less volatile than the S&P 500.

Insider and Institutional Ownership

72.9% of Perry Ellis International shares are held by institutional investors. Comparatively, 39.0% of Superior Uniform Group shares are held by institutional investors. 22.2% of Perry Ellis International shares are held by insiders. Comparatively, 34.7% of Superior Uniform Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Perry Ellis International and Superior Uniform Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Perry Ellis International 1.55% 9.18% 4.94%
Superior Uniform Group 6.63% 14.74% 8.44%

Valuation & Earnings

This table compares Perry Ellis International and Superior Uniform Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Perry Ellis International $841.88 million 0.32 $33.61 million $0.84 21.10
Superior Uniform Group $256.56 million 1.29 $28.05 million $1.14 19.61

Perry Ellis International has higher revenue and earnings than Superior Uniform Group. Superior Uniform Group is trading at a lower price-to-earnings ratio than Perry Ellis International, indicating that it is currently the more affordable of the two stocks.

Summary

Perry Ellis International beats Superior Uniform Group on 8 of the 15 factors compared between the two stocks.

Perry Ellis International Company Profile

Perry Ellis International, Inc. is an apparel company. The Company designs, sources, markets and licenses its products nationally and internationally at multiple price points and across all levels of retail distribution. It operates through four segments: Men’s Sportswear and Swim, Women’s Sportswear, Direct-to-Consumer and Licensing. Its Men’s Sportswear and Swim, and Women’s Sportswear segments are engaged in design, import and distribution of apparel to department stores and other retail outlets, primarily across the United States. Its Direct-to-Consumer segment is engaged in the sale of its branded and licensed products through its retail stores and e-commerce platform. Its Licensing segment includes royalties associated from the use of its brand names. Its brands include Perry Ellis and Original Penguin by Munsingwear (Original Penguin), Ben Hogan, Cubavera, Farah, Grand Slam, Jantzen, Laundry by Shelli Segal, Rafaella and Savane.

Superior Uniform Group Company Profile

Superior Uniform Group, Inc. (Superior) manufactures and sells a range of uniforms, corporate identity apparel, career apparel and accessories for the medical and health fields, as well as for the industrial, commercial, leisure and public safety markets. Superior operates through two segments: Uniforms and Related Products, and Remote Staffing Solutions. The Uniforms and Related Products segment consists of the sale of uniforms and related items. Its principal products are uniforms and service apparel, and related products for personnel of hospitals and health facilities; hotels, commercial buildings, residential buildings and food service facilities; retail stores; general and special purpose industrial uses; commercial enterprises, such as career apparel for banks and airlines; public and private safety and security organizations, and for miscellaneous service uses. The Remote Staffing Solutions segment consists of sales of staffing solutions.

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