Financial Survey: Tefron (OTCMKTS:TFRFF) and Under Armour (NYSE:UA)

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

Analyst Recommendations

This is a breakdown of current ratings for Under Armour and Tefron, as reported by MarketBeat.

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

Valuation & Earnings

This table compares Under Armour and Tefron”s top-line revenue, earnings per share (EPS) and valuation.

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

Tefron has lower revenue, but higher earnings 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.

Profitability

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

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

Risk and Volatility

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

Institutional and Insider Ownership

36.4% of Under Armour shares are owned by institutional investors. 15.6% of Under Armour shares are owned by insiders. Comparatively, 53.3% of Tefron shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

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

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.

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.