Unifi (NYSE:UFI) versus Lenzing Aktiengesellschaft (OTCMKTS:LNZNF) Critical Contrast

Unifi (NYSE:UFI) and Lenzing Aktiengesellschaft (OTCMKTS:LNZNF) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings for Unifi and Lenzing Aktiengesellschaft, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unifi	0	0	0	0	N/A
Lenzing Aktiengesellschaft	0	0	0	0	N/A

Profitability

This table compares Unifi and Lenzing Aktiengesellschaft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Unifi	-8.14%	-14.87%	-8.63%
Lenzing Aktiengesellschaft	N/A	N/A	N/A

Valuation and Earnings

This table compares Unifi and Lenzing Aktiengesellschaft”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unifi	$582.21 million	0.22	-$47.40 million	($2.62)	-2.64
Lenzing Aktiengesellschaft	N/A	N/A	N/A	$0.36	102.36

Lenzing Aktiengesellschaft has lower revenue, but higher earnings than Unifi. Unifi is trading at a lower price-to-earnings ratio than Lenzing Aktiengesellschaft, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

67.7% of Unifi shares are held by institutional investors. Comparatively, 11.0% of Lenzing Aktiengesellschaft shares are held by institutional investors. 17.9% of Unifi shares are held by 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

Lenzing Aktiengesellschaft beats Unifi on 5 of the 8 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 Lenzing Aktiengesellschaft

Lenzing Aktiengesellschaft, together with its subsidiaries, produces and markets wood-based cellulosic fibers for the textile and nonwoven sectors, and industrial applications. The company operates through Division Fiber, Division Pulp, and Others segments. It offers lyocell and modal fibers for applications in textiles products, such as denim, activewear, and lingerie and underwear; hygiene articles, which include baby wipes, facial sheet masks, and surface cleaning; and protective wear, engineered products, and packaging products under the LENZING, TENCEL, VEOCEL, and LENZING ECOVERO brand names. The company also provides biorefinery products comprising acetic acid biobased, furfural biobased, magnesium lignosulphonate biobased, soda ash, sodium sulphate, and xylose. It also engages in the training and personnel development activities. The company operates in Austria; rest of Europe; Asia; North, Central, and South America; and internationally. Lenzing Aktiengesellschaft was formerly known as Chemiefaser Lenzing AG and changed its name to Lenzing Aktiengesellschaft in 1984. The company was founded in 1892 and is headquartered in Lenzing, Austria.