Unifi (NYSE:UFI) versus G-III Apparel Group (NASDAQ:GIII) Head-To-Head Contrast

Unifi (NYSE:UFI) and G-III Apparel Group (NASDAQ:GIII) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Volatility and Risk

Unifi has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, G-III Apparel Group has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Profitability

This table compares Unifi and G-III Apparel Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Unifi	-2.91%	-6.71%	-4.01%
G-III Apparel Group	4.75%	5.53%	3.71%

Valuation and Earnings

This table compares Unifi and G-III Apparel Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unifi	$531.30 million	0.20	-$24.56 million	($0.82)	-7.11
G-III Apparel Group	$2.96 billion	0.46	$67.35 million	$3.04	10.33

G-III Apparel Group has higher revenue and earnings than Unifi. Unifi is trading at a lower price-to-earnings ratio than G-III Apparel Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Unifi and G-III Apparel Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unifi	1	0	0	0	1.00
G-III Apparel Group	0	4	2	0	2.33

G-III Apparel Group has a consensus target price of $34.75, suggesting a potential upside of 10.63%. Given G-III Apparel Group’s stronger consensus rating and higher probable upside, analysts clearly believe G-III Apparel Group is more favorable than Unifi.

Institutional and Insider Ownership

67.7% of Unifi shares are held by institutional investors. Comparatively, 92.1% of G-III Apparel Group shares are held by institutional investors. 20.5% of Unifi shares are held by company insiders. Comparatively, 15.0% of G-III Apparel Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

G-III Apparel Group beats Unifi on 13 of the 14 factors compared between the two stocks.

About Unifi

Unifi, Inc., together with its subsidiaries, engages in the manufacture and sale of recycled and synthetic products in North America, Central America, South America, Asia, and Europe. Its polyester products include partially oriented yarn, textured, solution and package dyed, twisted, beamed, and draw wound yarns in virgin or recycled varieties; and nylon products comprise virgin or recycled textured, solution dyed, and spandex covered yarns. The company also provides recycled solutions made from pre-consumer and post-consumer waste, such as plastic bottle flakes, polyester polymer beads, and staple fiber. It offers recycled and synthetic products primarily to yarn manufacturers, knitters, and weavers that produces yarn and fabric for the apparel, hosiery, automotive, home furnishings, industrial, medical, and other end-use markets. The company sells its products through sales force and independent sales agents under the REPREVE brand. Unifi, Inc. was incorporated in 1969 and is headquartered in Greensboro, North Carolina.

About G-III Apparel Group

G-III Apparel Group, Ltd. designs, sources, and markets women's and men's apparel in the United States and internationally. The company operates through two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brands, including DKNY, Donna Karan, Karl Lagerfeld, Karl Lagerfeld Paris, Vilebrequin, G.H. Bass, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Wilsons Leather, Sonia Rykiel, and G-III Sports by Carl Banks; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Levi's, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, Margaritaville, and Dockers. It has licenses with the National Football League, National Basketball Association, Major League Baseball, and National Hockey League, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. It also sells its products online. G-III Apparel Group, Ltd. was founded in 1956 and is based in New York, New York.