Innovative Designs (OTCMKTS:IVDN) and Superior Group of Companies (NASDAQ:SGC) Financial Comparison

Innovative Designs (OTCMKTS:IVDN) and Superior Group of Companies (NASDAQ:SGC) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Institutional and Insider Ownership

33.8% of Superior Group of Companies shares are held by institutional investors. 24.4% of Innovative Designs shares are held by company insiders. Comparatively, 26.7% of Superior Group of Companies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Innovative Designs and Superior Group of Companies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovative Designs	$2.77 million	3.47	$500,000.00	$0.03	8.33
Superior Group of Companies	$565.68 million	0.29	$12.00 million	$0.36	28.33

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

Profitability

This table compares Innovative Designs and Superior Group of Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovative Designs	17.87%	27.09%	24.11%
Superior Group of Companies	1.00%	2.89%	1.35%

Volatility and Risk

Innovative Designs has a beta of -2.88, indicating that its stock price is 388% less volatile than the S&P 500. Comparatively, Superior Group of Companies has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Innovative Designs and Superior Group of Companies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovative Designs	0	0	0	0	0.00
Superior Group of Companies	0	1	3	0	2.75

Superior Group of Companies has a consensus target price of $17.33, suggesting a potential upside of 69.93%. Given Superior Group of Companies’ stronger consensus rating and higher probable upside, analysts clearly believe Superior Group of Companies is more favorable than Innovative Designs.

Summary

Superior Group of Companies beats Innovative Designs on 10 of the 14 factors compared between the two stocks.

About Innovative Designs

Innovative Designs, Inc. engages in manufacture and marketing of cold weather recreational and industrial clothing products in the United States and Canada. The company operates in two segments, Apparel and House Wrap. It offers arctic armor line products, including jackets, bibs, and gloves for ice fisherman, snowmobilers, utility workers, oil/gas pipeline workers, railroad workers, construction workers, ski resort workers, and police and first responders; and house wrap that provides barrier protection and moisture vapor transmission and insulation for the building construction industry. In addition, it offers INSULTEX material in bulk to non-competing customers; products that restore the waterproof character of the outer side of its arctic armor clothing; and cold weather headgears and base insulation clothing products. The company primarily sells its products through independent sales agents, agencies, retailers, and distributors, as well as through website. The company was incorporated in 2002 and is based in Pittsburgh, Pennsylvania.

About Superior Group of Companies

Superior Group of Companies, Inc. manufactures and sells apparel and accessories in the United States and internationally. It operates through three segments: Branded Products, Healthcare Apparel, and Contact Centers. The Branded Products segment produces and sells customized merchandising solutions, promotional products, and branded uniform to chain retailer, food service, entertainment, technology, transportation, and other industries under BAMKO and HPI brands. The Healthcare Apparel segment manufactures and sells healthcare apparel, such as scrubs, lab coats, protective apparel, and patient gowns under the Fashion Seal Healthcare, CID Resources and Wink, and Carhartt brand names. This segment sells healthcare service apparel to healthcare laundries, dealers, distributors, and physical and e-commerce retailers. The Contact Centers segment offers outsourced, nearshore business process outsourcing, and contact and call-center support services. The company was formerly known as Superior Uniform Group, Inc. and changed its name to Superior Group of Companies, Inc. in May 2018. Superior Group of Companies, Inc. was founded in 1920 and is headquartered in St. Petersburg, Florida.