Financial Comparison: Columbia Sportswear (COLM) vs. Superior Uniform Group (SGC)

Columbia Sportswear (NASDAQ: COLM) and Superior Uniform Group (NASDAQ:SGC) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.

Risk and Volatility

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Columbia Sportswear has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Superior Uniform Group has a beta of -0.19, indicating that its stock price is 119% less volatile than the S&P 500.

Earnings & Valuation

This table compares Columbia Sportswear and Superior Uniform Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Columbia Sportswear $2.47 billion 2.24 $105.12 million $2.98 26.46
Superior Uniform Group $266.81 million 1.50 $15.02 million $1.25 21.15

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

Dividends

Columbia Sportswear pays an annual dividend of $0.88 per share and has a dividend yield of 1.1%. Superior Uniform Group pays an annual dividend of $0.38 per share and has a dividend yield of 1.4%. Columbia Sportswear pays out 29.5% of its earnings in the form of a dividend. Superior Uniform Group pays out 30.4% 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Columbia Sportswear 4.26% 12.65% 9.97%
Superior Uniform Group 5.64% 15.81% 9.29%

Institutional & Insider Ownership

38.9% of Columbia Sportswear shares are held by institutional investors. Comparatively, 35.9% of Superior Uniform Group shares are held by institutional investors. 58.9% of Columbia Sportswear shares are held by company insiders. Comparatively, 34.7% of Superior Uniform Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Columbia Sportswear and Superior Uniform Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Columbia Sportswear 0 7 7 0 2.50
Superior Uniform Group 0 0 1 0 3.00

Columbia Sportswear presently has a consensus target price of $76.85, suggesting a potential downside of 2.54%. Superior Uniform Group has a consensus target price of $29.00, suggesting a potential upside of 9.68%. Given Superior Uniform Group’s stronger consensus rating and higher possible upside, analysts plainly believe Superior Uniform Group is more favorable than Columbia Sportswear.

Summary

Columbia Sportswear beats Superior Uniform Group on 11 of the 16 factors compared between the two stocks.

About Columbia Sportswear

Columbia Sportswear Company, together with its subsidiaries, designs, sources, markets, and distributes outdoor and active lifestyle apparel, footwear, accessories, and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. The company provides apparel, accessories, and equipment that are used various outdoor activities, such as skiing, snowboarding, hiking, climbing, mountaineering, camping, hunting, fishing, trail running, water sports, yoga, golf, and adventure travel for men and women under the Columbia, Mountain Hardwear, SOREL, and prAna brands, as well as for youth under the Columbia brand name. It also offers footwear products, including hiking boots, trail running shoes, rugged cold weather boots, sandals, and casual shoes for men, women, and youth under the Columbia and SOREL brands. The company sells its products through wholesale distribution channels, direct-to-consumer channels, independent distributors, and licensees, as well as directly to consumers through its network of branded and outlet retail stores, and online. As of December 31, 2017, it operated 105 outlet retail stores and 24 branded retail stores in the United States; 119 concession-based, branded, outlet, and shop-in-shop locations in Japan; 162 concession-based, branded, outlet, and shop-in-shop locations in Korea; 24 outlet, shop-in-shop and concession-based locations, as well as 1 branded retail store in various locations in Western Europe; and 6 outlet retail stores in Canada. The company was founded in 1938 and is headquartered in Portland, Oregon.

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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