Reviewing Fossil Group (FOSL) & Its Rivals

Fossil Group (NASDAQ:FOSL) is one of 117 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it weigh in compared to its peers? We will compare Fossil Group to related businesses based on the strength of its valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Profitability

This table compares Fossil Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fossil Group	-1.86%	-7.76%	-0.93%
Fossil Group Competitors	-3.13%	14.14%	2.99%

Analyst Ratings

This is a summary of recent ratings and target prices for Fossil Group and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fossil Group	1	0	3	2	3.00
Fossil Group Competitors	1657	7669	10096	366	2.46

Fossil Group presently has a consensus price target of $9.25, indicating a potential upside of 9.73%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 9.87%. Given Fossil Group’s peers higher possible upside, analysts clearly believe Fossil Group has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Fossil Group and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fossil Group	$1.00 billion	-$78.30 million	-25.55
Fossil Group Competitors	$5.68 billion	$471.75 million	22.20

Fossil Group’s peers have higher revenue and earnings than Fossil Group. Fossil Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

61.1% of Fossil Group shares are held by institutional investors. Comparatively, 54.1% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by institutional investors. 3.8% of Fossil Group shares are held by insiders. Comparatively, 16.1% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Fossil Group has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Fossil Group’s peers have a beta of 0.93, suggesting that their average share price is 7% less volatile than the S&P 500.

Summary

Fossil Group peers beat Fossil Group on 8 of the 13 factors compared.

Fossil Group Company Profile

Fossil Group designs, develops, markets and distributes fashion accessories, including watches, handbags, small leather goods, jewelry and other accessories. Its products are sold under company-owned brands such as Fossil, Skagen, Michele and Zodiac, as well as through licensing agreements with third-party brands. Founded in 1984, the company has built its business around combining watchmaking with fashion-oriented design. It serves customers internationally through wholesale partners, retail stores and online channels.