Head to Head Analysis: Columbia Sportswear (NASDAQ:COLM) & Tefron (OTCMKTS:TFRFF)

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

Analyst Recommendations

This is a summary of current ratings and target prices for Columbia Sportswear and Tefron, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Columbia Sportswear	1	4	2	0	2.14
Tefron	0	0	0	0	0.00

Columbia Sportswear presently has a consensus target price of $65.40, suggesting a potential upside of 10.14%. Given Columbia Sportswear’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Columbia Sportswear is more favorable than Tefron.

Risk & Volatility

Columbia Sportswear has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Tefron has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Valuation & Earnings

This table compares Columbia Sportswear and Tefron”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Columbia Sportswear	$3.40 billion	0.89	$177.22 million	$3.85	15.42
Tefron	$237.25 million	0.34	$2.69 million	($0.03)	-214.33

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Columbia Sportswear	6.05%	11.20%	6.67%
Tefron	-0.16%	-0.45%	-0.23%

Insider & Institutional Ownership

47.8% of Columbia Sportswear shares are owned by institutional investors. 51.9% of Columbia Sportswear shares are owned by company insiders. Comparatively, 53.3% of Tefron shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Columbia Sportswear beats Tefron on 13 of the 14 factors compared between the two stocks.

About Columbia Sportswear

Columbia Sportswear Company, together with its subsidiaries, designs, develops, markets, and distributes outdoor, active, and everyday 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 for hiking, trail running, snow, fishing, hunting, mountaineering, climbing, skiing and snowboarding, trail, and outdoor activities. It offers footwear products that include lightweight hiking boot; trail running shoes; rugged cold weather boots; sandals and shoes for use in water activities; and footwear for lifestyle wear. In addition, it owned network of branded and outlet retail stores; brand-specific e-commerce sites; and concession or franchise-based arrangements with third parties at branded outlet and shop-in-shop retail locations, as well as through independently operated specialty outdoor and sporting goods stores, sporting goods chains, department store chains, internet retailers, and international distributors. The company sells its products under the Columbia, Mountain Hard Wear, SOREL, and prAna brand names. Columbia Sportswear Company was founded in 1938 and is headquartered in Portland, Oregon.

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.