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

Institutional & Insider Ownership

86.6% of Oxford Industries shares are owned by institutional investors. Comparatively, 39.7% of Superior Uniform Group shares are owned by institutional investors. 3.3% of Oxford Industries shares are owned by company insiders. Comparatively, 34.7% of Superior Uniform Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Oxford Industries has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Superior Uniform Group has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500.

Earnings & Valuation

This table compares Oxford Industries and Superior Uniform Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Oxford Industries $1.04 billion 0.96 $135.16 million $2.89 20.64
Superior Uniform Group $256.56 million 1.29 $28.05 million $1.14 19.65

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

Dividends

Oxford Industries pays an annual dividend of $1.08 per share and has a dividend yield of 1.8%. Superior Uniform Group pays an annual dividend of $0.38 per share and has a dividend yield of 1.7%. Oxford Industries pays out 37.4% of its earnings in the form of a dividend. Superior Uniform Group pays out 33.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Oxford Industries has increased its dividend for 7 consecutive years. Oxford Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent recommendations for Oxford Industries and Superior Uniform Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oxford Industries 0 2 5 0 2.71
Superior Uniform Group 0 0 1 0 3.00

Oxford Industries currently has a consensus price target of $66.86, indicating a potential upside of 12.08%. Superior Uniform Group has a consensus price target of $26.00, indicating a potential upside of 16.07%. Given Superior Uniform Group’s stronger consensus rating and higher possible upside, analysts clearly believe Superior Uniform Group is more favorable than Oxford Industries.

Profitability

This table compares Oxford Industries and Superior Uniform Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oxford Industries 4.64% 13.56% 7.68%
Superior Uniform Group 6.63% 14.74% 8.44%

Summary

Superior Uniform Group beats Oxford Industries on 9 of the 17 factors compared between the two stocks.

About Oxford Industries

Oxford Industries, Inc. is an apparel company. The Company designs, sources, markets and distributes products bearing the trademarks of its owned Tommy Bahama, Lilly Pulitzer and Southern Tide lifestyle brands, other owned brands and licensed brands, as well as private label apparel products. It distributes its lifestyle branded products through its direct to consumer channels, consisting of its Tommy Bahama and Lilly Pulitzer full-price retail stores and its e-commerce sites for Tommy Bahama, Lilly Pulitzer and Southern Tide, and through its wholesale distribution channels. As of January 28, 2017, the Company operated 128 Tommy Bahama and 40 Lilly Pulitzer full-price retail stores. Tommy Bahama designs, sources, markets and distributes men’s and women’s sportswear and related products. Tommy Bahama products are available in the Tommy Bahama stores and on its Website, tommybahama.com, as well as in department stores and independent specialty stores throughout the United States.

About Superior Uniform Group

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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