Reviewing Tefron (OTCMKTS:TFRFF) & Gildan Activewear (NYSE:GIL)

Tefron (OTCMKTS:TFRFF) and Gildan Activewear (NYSE:GIL) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Volatility & Risk

Tefron has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, Gildan Activewear has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Profitability

This table compares Tefron and Gildan Activewear’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tefron	2.14%	6.72%	3.44%
Gildan Activewear	6.10%	21.38%	7.28%

Earnings and Valuation

This table compares Tefron and Gildan Activewear”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tefron	$293.86 million	0.28	$15.11 million	$0.40	16.08
Gildan Activewear	$4.07 billion	2.62	$398.88 million	$1.70	33.93

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

Analyst Ratings

This is a summary of current recommendations for Tefron and Gildan Activewear, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tefron	0	0	0	0	0.00
Gildan Activewear	0	4	12	0	2.75

Gildan Activewear has a consensus target price of $79.77, suggesting a potential upside of 38.27%. Given Gildan Activewear’s stronger consensus rating and higher probable upside, analysts clearly believe Gildan Activewear is more favorable than Tefron.

Insider & Institutional Ownership

82.8% of Gildan Activewear shares are held by institutional investors. 53.3% of Tefron shares are held by company insiders. Comparatively, 2.0% of Gildan Activewear shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Gildan Activewear beats Tefron on 13 of the 14 factors compared between the two stocks.

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.

About Gildan Activewear

Gildan Activewear Inc. manufactures and sells various apparel products in the United States, North America, Europe, Asia-Pacific, and Latin America. It provides various activewear products, including T-shirts, fleece tops and bottoms, and sports shirts under the Gildan, Gildan Performance, Gildan Hammer, Glidan Softstyle, Gildan Heavy Cotton, Gildan Ultra Cotton, Gildan DryBlend, Gildan HeavyBlend, Comfort Colors, and American Apparel brands. The company also offers hosiery products comprising athletic; dress; and casual, liner, therapeutic, and workwear socks under the Gildan, Under Armour, GoldToe, Signature Gold by Goldtoe, Peds, MediPeds, All Pro, and GoldTeo Edition TM brands. In addition, it provides men's and boys' underwear products, and ladies panties under the Gildan and Gildan Platinum brands. The company sells its products to wholesale distributors, screen printers, and embellishers, as well as to retailers and lifestyle brand companies. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was founded in 1946 and is headquartered in Montreal, Canada.