Superior Group of Companies (NASDAQ:SGC) and Broadwind (NASDAQ:BWEN) are both small-cap industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.
Earnings & Valuation
This table compares Superior Group of Companies and Broadwind's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Superior Group of Companies | $376.70 million | 0.98 | $12.07 million | $0.79 | 30.15 |
Broadwind | $178.22 million | 0.66 | $-4,520,000.00 | ($0.23) | -30.39 |
Superior Group of Companies has higher revenue and earnings than Broadwind. Broadwind 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.
Volatility and Risk
Superior Group of Companies has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Broadwind has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for Superior Group of Companies and Broadwind, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Superior Group of Companies | 0 | 0 | 1 | 0 | 3.00 |
Broadwind | 0 | 1 | 3 | 0 | 2.75 |
Superior Group of Companies presently has a consensus target price of $25.00, suggesting a potential upside of 4.95%. Broadwind has a consensus target price of $8.1667, suggesting a potential upside of 16.83%. Given Broadwind's higher probable upside, analysts plainly believe Broadwind is more favorable than Superior Group of Companies.
Insider & Institutional Ownership
38.7% of Superior Group of Companies shares are held by institutional investors. Comparatively, 40.9% of Broadwind shares are held by institutional investors. 30.5% of Superior Group of Companies shares are held by company insiders. Comparatively, 8.4% of Broadwind 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.
Profitability
This table compares Superior Group of Companies and Broadwind's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Superior Group of Companies | 6.43% | 18.68% | 8.81% |
Broadwind | -0.52% | -0.77% | -0.25% |
Summary
Superior Group of Companies beats Broadwind on 10 of the 14 factors compared between the two stocks.