Critical Analysis: Tefron (OTCMKTS:TFRFF) versus J-Long Group (NASDAQ:JL)

J-Long Group (NASDAQ:JL) and Tefron (OTCMKTS:TFRFF) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for J-Long Group and Tefron, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J-Long Group	1	0	0	0	1.00
Tefron	0	0	0	0	0.00

Profitability

This table compares J-Long Group and Tefron’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
J-Long Group	N/A	N/A	N/A
Tefron	4.31%	15.13%	7.68%

Earnings and Valuation

This table compares J-Long Group and Tefron”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J-Long Group	$39.08 million	0.36	$2.59 million	N/A	N/A
Tefron	$293.86 million	0.27	$15.11 million	$0.87	7.39

Tefron has higher revenue and earnings than J-Long Group.

Risk & Volatility

J-Long Group has a beta of -0.46, meaning that its share price is 146% less volatile than the S&P 500. Comparatively, Tefron has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Summary

Tefron beats J-Long Group on 6 of the 8 factors compared between the two stocks.

About J-Long Group

J-Long Group Limited distributes reflective and non-reflective garment trims in Asia, Hong Kong, the People's Republic of China, and internationally. The company offers heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers, and drawcords. It also sells through online. The company was founded in 1985 and is based in Tsuen Wan, Hong Kong.

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.