Critical Comparison: Movado Group (MOV) & Fossil Group (FOSL)
Movado Group (NYSE: MOV) and Fossil Group (NASDAQ:FOSL) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.
Movado Group pays an annual dividend of $0.52 per share and has a dividend yield of 2.3%. Fossil Group does not pay a dividend. Movado Group pays out 44.1% of its earnings in the form of a dividend. Movado Group has raised its dividend for 5 consecutive years.
Valuation & Earnings
This table compares Movado Group and Fossil Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Movado Group||$537.95 million||0.68||$59.24 million||$1.18||19.03|
|Fossil Group||$2.88 billion||0.13||$179.11 million||($6.72)||-1.11|
Fossil Group has higher revenue and earnings than Movado Group. Fossil Group is trading at a lower price-to-earnings ratio than Movado Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Movado Group has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Fossil Group has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Movado Group and Fossil Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Movado Group currently has a consensus price target of $29.50, indicating a potential upside of 31.40%. Fossil Group has a consensus price target of $16.38, indicating a potential upside of 118.75%. Given Fossil Group’s higher probable upside, analysts plainly believe Fossil Group is more favorable than Movado Group.
This table compares Movado Group and Fossil Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
63.0% of Movado Group shares are owned by institutional investors. Comparatively, 97.2% of Fossil Group shares are owned by institutional investors. 33.0% of Movado Group shares are owned by insiders. Comparatively, 12.8% of Fossil Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Movado Group beats Fossil Group on 10 of the 17 factors compared between the two stocks.
Movado Group Company Profile
Movado Group, Inc. designs, sources, markets and distributes watches. The Company operates through two segments: Wholesale and Retail. The Wholesale segment includes the design, development, sourcing, marketing and distribution of watches, and after-sales service activities and shipping. It sells all of its brands to jewelry store chains and department stores, as well as independent jewelers. The Retail segment includes its outlet stores. As of January 31, 2017, its subsidiary, Movado Retail Group, Inc., operated 40 outlet stores located in outlet centers across the United States. It divides its business into two geographic locations: the United States operations and International operations. It has international operations in Europe, the Americas, the Middle East and Asia. Its portfolio of brands includes Coach Watches, Concord, Ebel, ESQ Movado, Scuderia Ferrari Watches, HUGO BOSS Watches, Juicy Couture Watches, Lacoste Watches, Movado and Tommy Hilfiger Watches.
Fossil Group Company Profile
Fossil Group, Inc. is a design, marketing and distribution company that specializes in consumer fashion accessories. The Company’s segments include Americas, Europe and Asia. Each segment includes sales to wholesale and distributor customers, and sales through the Company-owned retail stores and e-commerce activities based on the location of the selling entity. The Americas segment includes sales to customers based in Canada, Latin America and the United States. The Europe segment includes sales to customers based in European countries, the Middle East and Africa. The Asia segment includes sales to customers based in Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea, Taiwan and Thailand. The Company’s principal offerings include a line of men’s and women’s fashion watches and jewelry, handbags, small leather goods, belts, sunglasses and soft accessories.
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