Financial Comparison: Unifi (NYSE:UFI) & Capri (NYSE:CPRI)

Unifi (NYSE:UFI) and Capri (NYSE:CPRI) 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, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Unifi and Capri, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unifi	1	0	0	0	1.00
Capri	1	9	5	1	2.38

Capri has a consensus target price of $21.93, suggesting a potential upside of 47.99%. Given Capri’s stronger consensus rating and higher probable upside, analysts clearly believe Capri is more favorable than Unifi.

Profitability

This table compares Unifi and Capri’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Unifi	-4.62%	-10.32%	-6.08%
Capri	4.44%	297.36%	5.12%

Insider & Institutional Ownership

67.7% of Unifi shares are owned by institutional investors. Comparatively, 84.3% of Capri shares are owned by institutional investors. 20.5% of Unifi shares are owned by insiders. Comparatively, 2.6% of Capri shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Unifi and Capri”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unifi	$531.30 million	0.23	-$24.56 million	($1.33)	-5.00
Capri	$3.47 billion	0.48	$137.00 million	$1.30	11.40

Capri has higher revenue and earnings than Unifi. Unifi is trading at a lower price-to-earnings ratio than Capri, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Unifi has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Capri has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Summary

Capri beats Unifi on 14 of the 15 factors compared between the two stocks.

About Unifi

Unifi, Inc., together with its subsidiaries, engages in the manufacture and sale of recycled and synthetic products in North America, Central America, South America, Asia, and Europe. Its polyester products include partially oriented yarn, textured, solution and package dyed, twisted, beamed, and draw wound yarns in virgin or recycled varieties; and nylon products comprise virgin or recycled textured, solution dyed, and spandex covered yarns. The company also provides recycled solutions made from pre-consumer and post-consumer waste, such as plastic bottle flakes, polyester polymer beads, and staple fiber. It offers recycled and synthetic products primarily to yarn manufacturers, knitters, and weavers that produces yarn and fabric for the apparel, hosiery, automotive, home furnishings, industrial, medical, and other end-use markets. The company sells its products through sales force and independent sales agents under the REPREVE brand. Unifi, Inc. was incorporated in 1969 and is headquartered in Greensboro, North Carolina.

About Capri

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also engages in licensing agreements to the manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.