Head to Head Analysis: Stage Stores (OTCMKTS:SSINQ) vs. Fossil Group (NASDAQ:FOSL)

Stage Stores (OTCMKTS:SSINQ) and Fossil Group (NASDAQ:FOSL) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Earnings and Valuation

This table compares Stage Stores and Fossil Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stage Stores	N/A	N/A	N/A	N/A	N/A
Fossil Group	$1.15 billion	0.17	-$102.67 million	($1.27)	-2.88

Stage Stores has higher earnings, but lower revenue than Fossil Group.

Analyst Recommendations

This is a summary of recent ratings for Stage Stores and Fossil Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stage Stores	0	0	0	0	0.00
Fossil Group	1	0	1	0	2.00

Fossil Group has a consensus target price of $5.00, suggesting a potential upside of 36.61%. Given Fossil Group’s stronger consensus rating and higher possible upside, analysts clearly believe Fossil Group is more favorable than Stage Stores.

Profitability

This table compares Stage Stores and Fossil Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stage Stores	N/A	N/A	N/A
Fossil Group	-6.32%	-18.08%	-3.11%

Insider & Institutional Ownership

61.1% of Fossil Group shares are owned by institutional investors. 11.6% of Stage Stores shares are owned by insiders. Comparatively, 2.9% of Fossil Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Fossil Group beats Stage Stores on 5 of the 9 factors compared between the two stocks.

About Stage Stores

Stage Stores, Inc. operates specialty department stores primarily in small towns and rural communities in the United States. The company sells moderately priced and brand name apparel, accessories, cosmetics, footwear, and home goods through its department stores, off-price stores, and e-commerce Website, as well as through private label credit card and loyalty programs. As of September 17, 2019, it operated 625 BEALLS, GOODY'S, PALAIS ROYAL, PEEBLES, and STAGE specialty department stores; and 158 GORDMANS off-price stores. The company was founded in 1988 and is headquartered in Houston, Texas. On May 10, 2020, Stage Stores, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The plan was later approved as Chapter 11 liquidation on August 14, 2020.

About Fossil Group

Fossil Group, Inc., together with its subsidiaries, designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. The company’s products include traditional watches, smartwatches, jewelry, handbags, small leather goods, belts, and sunglasses. It also manufactures and distributes private label brands, as well as branded products purchased for resell in other branded retail stores. The company offers its products under its proprietary brands, such as FOSSIL, SKAGEN, MICHELE, RELIC, and ZODIAC; and under the licensed brands, including ARMANI EXCHANGE, DIESEL, DKNY, EMPORIO ARMANI, KATE SPADE NEW YORK, MICHAEL KORS, TORY BURCH, and Skechers. The company sells its products through company-owned retail and outlet stores, department and specialty retail stores, mass market stores, e-commerce sites, licensed and franchised FOSSIL retail stores, and retail concessions, as well as sells its products on airlines. The company was formerly known as Fossil, Inc. and changed its name to Fossil Group, Inc. in May 2013. Fossil Group, Inc. was founded in 1984 and is headquartered in Richardson, Texas.