Critical Comparison: Perfect Moment (NASDAQ:PMNT) vs. Jerash Holdings (US) (NASDAQ:JRSH)

Jerash Holdings (US) (NASDAQ:JRSH) and Perfect Moment (NASDAQ:PMNT) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Jerash Holdings (US) and Perfect Moment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jerash Holdings (US)	$138.14 million	0.32	-$2.01 million	($0.31)	-11.45
Perfect Moment	$21.31 million	0.77	-$8.72 million	($1.30)	-0.75

Jerash Holdings (US) has higher revenue and earnings than Perfect Moment. Jerash Holdings (US) is trading at a lower price-to-earnings ratio than Perfect Moment, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Jerash Holdings (US) and Perfect Moment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jerash Holdings (US)	0	0	0	0	0.00
Perfect Moment	0	0	1	0	3.00

Perfect Moment has a consensus price target of $6.00, indicating a potential upside of 518.49%. Given Perfect Moment’s stronger consensus rating and higher possible upside, analysts plainly believe Perfect Moment is more favorable than Jerash Holdings (US).

Profitability

This table compares Jerash Holdings (US) and Perfect Moment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jerash Holdings (US)	-2.73%	-5.97%	-4.78%
Perfect Moment	-67.38%	-513.83%	-119.38%

Institutional & Insider Ownership

3.4% of Jerash Holdings (US) shares are owned by institutional investors. Comparatively, 23.0% of Perfect Moment shares are owned by institutional investors. 41.7% of Jerash Holdings (US) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Jerash Holdings (US) beats Perfect Moment on 7 of the 13 factors compared between the two stocks.

About Jerash Holdings (US)

Jerash Holdings (US), Inc., through its subsidiaries, manufactures and exports customized and ready-made sport and outerwear. The company offers t-shirts; jackets and pullover; pants and shorts; crew neck, polo shirts, and tank tops made from knitted fabric, as well as personal protective equipment. It serves various brand-name retailers in the United States, Hong Kong, Jordan, and internationally. The company was incorporated in 2016 and is headquartered in Fairfield, New Jersey.

About Perfect Moment

Perfect Moment Ltd., together with its subsidiaries, owns and operates a fashion brand that offers ski, surf, and activewear collections under the brand name of Perfect Moment. It offers skiwear, outerwear, swimwear and activewear for women, men, and children. The company sells its collections directly to customers through e-commerce and to wholesale accounts, as well as through other sales partnerships. Perfect Moment Ltd. was founded in 1984 and is based in London, the United Kingdom.