Fossil Group (NASDAQ:FOSL) and Adidas (OTCMKTS:ADDYY) Financial Review

Adidas (OTCMKTS:ADDYYGet Free Report) and Fossil Group (NASDAQ:FOSLGet Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Institutional and Insider Ownership

61.1% of Fossil Group shares are held by institutional investors. 3.8% of Fossil Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Adidas and Fossil Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adidas 1 3 10 0 2.64
Fossil Group 1 1 2 1 2.60

Adidas currently has a consensus target price of $146.02, suggesting a potential upside of 75.89%. Fossil Group has a consensus target price of $9.00, suggesting a potential upside of 81.09%. Given Fossil Group’s higher possible upside, analysts clearly believe Fossil Group is more favorable than Adidas.

Valuation & Earnings

This table compares Adidas and Fossil Group”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adidas $28.06 billion 1.06 $1.52 billion $4.54 18.29
Fossil Group $1.00 billion 0.29 -$78.30 million ($1.28) -3.88

Adidas has higher revenue and earnings than Fossil Group. Fossil Group is trading at a lower price-to-earnings ratio than Adidas, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Adidas 5.30% 22.35% 6.80%
Fossil Group -7.09% -59.76% -7.53%

Risk & Volatility

Adidas has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Fossil Group has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.

Summary

Adidas beats Fossil Group on 10 of the 15 factors compared between the two stocks.

About Adidas

(Get Free Report)

adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products in Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific, and Latin America. It offers footwear, apparel, and accessories and gear, such as bags and balls under the adidas brand; golf footwear and apparel under the adidas Golf brand; and outdoor footwear under the Five Ten brand. It sells its products through its own retail stores; mono-branded franchise stores and shop-in-shops; and wholesale and its e-commerce channels. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany.

About Fossil Group

(Get Free Report)

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.

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