Critical Review: Jerash Holdings (US) (NASDAQ:JRSH) versus Perfect Moment (NASDAQ:PMNT)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perfect Moment	$21.31 million	0.87	-$8.72 million	($1.30)	-0.86
Jerash Holdings (US)	$138.14 million	0.31	-$2.01 million	($0.31)	-11.13

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.

Profitability

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

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Perfect Moment and Jerash Holdings (US), as reported by MarketBeat.

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

Perfect Moment presently has a consensus target price of $6.00, indicating a potential upside of 438.60%. Given Perfect Moment’s stronger consensus rating and higher possible upside, research analysts plainly believe Perfect Moment is more favorable than Jerash Holdings (US).

Insider & Institutional Ownership

23.0% of Perfect Moment shares are held by institutional investors. Comparatively, 3.4% of Jerash Holdings (US) shares are held by institutional investors. 41.7% of Jerash Holdings (US) 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

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

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.

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.